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Wiliams WAD Indicator

I am looking at a trading strategy that uses the Williams WAD (Williams Accumulation/Distribution) indicator. I only find the Williams %R on the Stock Charts. Does Stock Charts have this indicator, or if not, a similar one that could be used as a replacement ?

Comments

  • markdmarkd ✭✭✭
    edited November 2017
    All the available indicators are in the Indicators drop down on the Chart Workbench. I don't see WAD there.

    It looks like WAD is just a variation of OBV, but multiplies the volume by the size of the price change, accounting for gaps, before adding or subtracting it to a running total, instead of just adding or subtracting the actual volume as OBV does. Maybe this sometimes makes a difference in whether a divergence appears, but I would guess that whatever strategy you are investigating would work as well, or nearly as well (heck, maybe better!) as WAD. The principle is the same.

    Although some people like Chaiken AD and/or MoneyFlow, I would be uncomfortable with the way it handles gaps - which is basically to ignore them, so that a stock closing down vs. the prior close but above the midpoint of the current bar gets its volume added to the total. You can get very different results vs. OBV, and I would guess likewise for WAD, so neither would be a good substitute.

    You could look at Force Index, which is an Elder indicator. It uses an EMA instead of a running total, but it also works on the divergence principle, although it might not work as a substitute for WAD in the strategy you are researching. The Chart School article on Force is really good at explaining how it can be used.

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