Posted By: TradersLog
Developed by Larry Williams, the Williams’ Accumulation/ Distribution indicator aims to reflect whether the market is controlled by buyers (accumulation) or by sellers (distribution).
Prices making a new low along with the A/D indicator failing to reach a new low suggests that accumulation is taking place and creates a buy signal. Prices making a new high and the indicator failing to make new highs suggests distribution is taking place and creates a sell signal.
Chart courtesy of Prophet Financial Systems (www.prophet.net)