How Accumulation & Distribution is Calculated in Stock Market ?
To calculate Williams’ Accumulation/Distribution indicator, first work out the True Range High (“TRH” – the higher of yesterday’s close or todays high) and True Range Low (“TRL” – the lower of yesterdays close or todays low).
Williams’ Accumulation/Distribution is a cumulative total of “X” where:
TRH (true range of highs) =
Yesterday’s close or today’s high, whichever is greater.
TRL (true range of lows) =
Yesterday’s close or today’s low, whichever is less.
If today’s close is greater than yesterday’s close,
X = today’s close – TRL,
otherwise, if today’s close is less than yesterday’s close,
X = today’s close – TRH,
otherwise,
X = 0.