Introduction to Technical Analysis
Williams Accumulation Distribution (WAD) is a chart pattern that helps traders and investors identify potential buy or sell signals for a particular asset or security. This chart pattern was developed by Larry Williams, a well-known trader and author, and is based on the principle that price and volume are closely related.
The Williams AD indicator measures the cumulative flow of money into or out of an asset over a period of time. It takes into account the asset’s closing price, the high and low prices of the day, and the volume traded during that day. The resulting value is then added or subtracted to a running total, creating an accumulation or distribution line.
By analyzing the WAD line, traders can identify trends and momentum in the asset’s price action, as well as potential reversal points. I am using the Williams AD chart pattern as a buy/sell trigger. I go into great detail on exactly how I am using it together with Simple Moving Averages as indicators and triggers in one of my on-demand classes in the Bitfolio Academy VIP membership: “Three of my top Technical Analysis Strategies for Crypto.“
My data provider uses Coordinated Universal Time (UTC). So, the daily high, daily low, daily volume… is recorded by 7:00 p.m. ET. The charts below are updated every night at 8:00 p.m. ET (5:00 p.m. PT) with the data for the previous day. I am using the plotly library to generate these chart patterns. Blue (or “green” on chart label) is a buy trigger on the daily chart. Red is a sell trigger on the daily chart. The height of the bar represents the trading volume for the day.
If the page is showing a cached chart from the previous day and not the correct chart, right click on the image and open the image in a new tab. Then, hit the button to “Reload this page” until the correct image is displayed. This web server caches images, and I have attempted to turn off caching for this page. But, the images tend to get cached.
Bitcoin and Ethereum get so much daily trading volume that it skews the chart for the other coins. So, I am separating out Bitcoin & Ethereum in a separate chart. Blue is a buy trigger on the daily chart. Red is a sell trigger on the daily chart. The height of the bar represents the trading volume for the day.