William’s Variable Accumulation Distribution

The Williams Variable Accumulation Distribution (WVAD), developed by Larry Williams, is a volume-weighted price momentum indicator.  It measures the buying and selling pressure by calculating the relationship between the number of points the market has moved from the open to close relative to the period’s entire range.  Short positions are taken for a negative moving average value, and Long positions for positive average values.


WVAD = (( Close – Open ) / ( High – Low )) * Volume

The formula can be implemented with a DYO, as shown.   This is available as a package to download from the Ensign web site using the Package feature in Ensign 10.

A – Period for Moving Average (Line D)
B – Implements the formula.    WVAD = (( Close – Open ) / ( High – Low )) * Volume
C – Plot the formula values.  This statement is used because it will plot values that equal zero, whereas plotting directly from line B would not.
D – Simple Moving Average of the WVAD.  Plotted in Red.
F – Mark where the average crosses above zero.  This is the Long signal.
G – Mark where the average crosses below zero.  This is the Short signal.