Welcome to this video on the accumulation distribution indicator for accurate trend trading. This tutorial applies to Forex, the stock market and E-minis (as well as other futures markets).
You’ll learn how to use williams accumulation distribution to create an effective trend trading strategies.
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ACCUMULATION DISTRIBUTION INDICATOR
Welcome to this trading video on the accumulation distribution indicator. And there are several types of accumulation distribution indicators. There is an index that’s accumulation distribution I’ve done another video on that and then the one I’m going to show you today though was developed by Larry Williams and released in his 1986 book Secret of Selecting Stocks.
Accumulation distribution line we’ll just call it the online story choppy right. That’s a lot of ups and downs and ups and downs ups and downs. And for that reason I find it very hard to read to make any sense out of it. I look at the black line now that blank line is now the exponential moving average. The zero so-called zero leg exponential moving average. So it’s going to move as fast as possible. And basically what we’re looking for here is we’re looking for.
WILLIAMS ACCUMULATION DISTRIBUTION
And again we can’t see this alone. Got to treat it with other things. Let me be clear with that trend is lagging. So we cannot try this by itself. Got to treat it with a momentum indicator. Actually this is considered a momentum indicator but we’re going to use it as a trend indicator but we have to use that with a leading indicator number one. And we also have to use it with a cycle indicator number two to time our entries because this does not help you time when to get in when to get out.
OK so back here what I’m doing now is I am looking for the angle of the black line. The zero leg moving average. So here it’s flat. So I would say OK. During this time there’s no trend really no no clear trend. And you see the markets moving pretty much sideways. Then we start having the black line angling down. And so therefore then I would say all right now we’ve got a different situation now that is hanging down.
TREND TRADING STRATEGIES
The trend is down. All right. And another thing to look for by the way if you get a little early your signal on this is the spread between the moving average and the actual Aideen line. So you’ll see that the line starts sailing down here. One way by the way you can do this to us a little extra step. You can go up here and get your crosshairs are in Milliot over the moving average because the crosshairs bar is going to have a horse in a straight horizontal Lane on it.
You can look for the divergence there too not divergence but the moving away. So here you can see that the moving average has now pulled away from the crosshairs right there. All right. So it’s no longer horizontal and the blue lines maneuverability the black line. And so this would be about our first signal here and taking a short you know anywhere like below the low these bars then we’ll get you into a short trade in.
ACCUMULATION DISTRIBUTION INDICATOR FOR MT4 OR EXCEL
Look here where we get the market going sideways. And this is a big issue because a lot of times traders can make money with trends trends are very commonly taught and when the market is trending up ok I’m making money. That’s cool. Here’s the problem though then a lot of traders give back the money that they’ve made and sometimes more when the market goes into consolidation. If you can just learn to avoid trendless markets consolidating markets that’s worth a lot that helps you avoid a lot of losses and then get you back into profit.
Stay out during that time or look for a different market to be trading during that time when that’s clearly moving up or down. So here we get it right here at this point. We get the arrow here. This is where we get the line going up. If we take our global crosshairs. I can’t do it because I believe that everyone there let me take that arrow off for a second just to demonstrate this example again.
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BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.
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Those interested in support and resistance zones that actually work also showed in interest in this video:
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