Williams %R


Williams %R is a technical indicator used to measure overbought or oversold conditions in financial assets. Developed by Larry Williams, it oscillates between 0 and -100, indicating overbought conditions and oversold conditions. It helps traders identify potential reversal points and helps predict asset corrections or trend reversals.
Any idea using it?
The indicator oscillates between 0 and -100, with readings above -20 typically considered overbought and readings below -80 considered oversold.
  1. Overbought/Oversold Levels: Traders can look for overbought conditions (reading above -20) as potential selling opportunities and oversold conditions (reading below -80) as potential buying opportunities.
  2. Divergence: Traders can look for divergences between the indicator and price movement. For example, if the price makes a higher high while the Williams %R makes a lower high, it could signal a potential reversal.
  3. Reversal Signals: Traders can watch for bullish or bearish reversal signals generated by the indicator, such as when it crosses above or below certain threshold levels (-20 or -80).
  4. Confirmation: The Williams %R can be used as a confirmation tool alongside other technical indicators or chart patterns to validate trading decisions.
The Williams Percent Range or also called Williams %R is a momentum oscillator that measures the level of the last closing price relative to the highest high and lowest low over a certain period. It is used to determine an asset’s overbought and oversold conditions and can be used to generate potential buy or sell signals.