Williams describes the A/D indicator’s divergences as price making a new high while the Williams’ A/D indicator fails to make a new high pointing to the start of the distribution phase therefore a short position is placed. Similarly, when price makes a new low by the Williams’ A/D fails to make a new low, it points to the period of accumulation and therefore a long position is taken.
There are no configurable settings for the Williams Accumulation/Distribution indicator, although the calculation is a bit more complex. However, traders should suffice to know that the Williams’ A/D indicator makes use of the closing prices in relation to the volume to plot the values on the oscillator.
Unlike other oscillators, the divergences with Williams A/D tend to be more accurate with the oscillator being adept at capturing the peaks and troughs with precision. The Williams’ Accumulation/Distribution indicator is not a default indicator with MT4 and it needs to be downloaded from the MQL4 codebase repository
Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital. Please make sure that you fully understand the risks involved, taking into consideration your investment objectives and level of experience, before trading, and if necessary, seek independent advice. Please read the complete risk.