Introduction
Want to gain an edge in crypto trading? Technical analysis can help you identify potential buy and sell signals, and one powerful tool in your arsenal is the Williams Accumulation Distribution (WAD) indicator. Developed by renowned trader Larry Williams, WAD analyzes the relationship between price and volume to reveal insights into market psychology and potential turning points.
Understanding WAD
WAD measures the cumulative flow of money into or out of an asset over time. It considers the closing price, daily high and low, and trading volume, generating a running total that forms the accumulation/distribution line. By analyzing this line, you can identify trends, momentum, and potential reversals in the asset’s price action.
WAD as a Buy/Sell Trigger
I leverage the WAD chart pattern as a buy/sell trigger in my trading strategy. In my on-demand webinar, “Three of My Top Technical Analysis Strategies for Crypto” (available in the Bitfolio Academy Explorer membership), I delve into how I combine WAD with Simple Moving Averages to generate high-probability trading signals. The following chart, which is dynamically updated daily, is an example of my WAD Buy/Sell Trigger.
Williams Accumulation Distribution Trigger
Chart Updates
My data provider operates on Coordinated Universal Time (UTC), so daily highs, lows, and volumes are recorded by 7:00 p.m. ET. The charts above are updated nightly at 9:00 p.m. ET (6:00 p.m. PT) with the previous day’s data.