Williams’ Accumulation/Distribution, W A/D

De este modo, if the current closing price is higher than the previous one, W_A/D is enlarged by the difference between the current closing price and the true minimum. If the current closing price is less than the previous, W_A/D is diminished by the difference between the current closing price and the true maximum.
ВAs trade signals of this indicator, Williams recommends using divergences:

• when price reaches a new maximum and W_A/D cannot reach the new maximum, it means the security distribution takes place. This is a signal to sell;
• when prices reaches a new minimum and W_A/D cannot reach the new minimum, it means the security accumulation takes place. This is a signal to buy.