Williams Accumulation/Distribution (WAD)

Overview

The Williams Accumulation/Distribution indicator, created by Larry Williams, provides a unique approach to measuring market pressure by focusing exclusively on price relationships rather than volume. Unlike traditional accumulation/distribution indicators, WAD determines whether accumulation or distribution is occurring by comparing consecutive closing prices and measuring the distance from the true range extremes. This makes it particularly effective for markets where volume data may be unreliable or unavailable.

The indicator's calculation uses the concept of True Range High (TRH) and True Range Low (TRL), which account for gaps between sessions. When prices close higher, WAD measures accumulation as the distance from the close to the true low. When prices close lower, it measures distribution as the distance from the close to the true high. These daily values are then accumulated into a running total that oscillates to reflect the underlying buying or selling pressure in the market.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.