William Percent R XAUUSD Technical Analysis & William Percent R XAUUSD Signals

Williams %R Technical XAUUSD Indicator Developed by Larry Williams

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Gold Indicator is a momentum oscillator used to analyze overbought and oversold levels in the gold markets.

The William % Range oscillator is similar to the Stochastic Oscillator indicator, apart from that fact that the % R is drawn upside down on a negative scale that's from 0 to -100 and the indicator doesn't apply a smoothing factor.

Williams %R, Percent R Technical Gold Indicator - XAUUSD Indicators

The Williams %R indicator analyzes the association of the closing gold trading prices relative to the High and Low range over a selected number of n candles.

• The closer the closing gold trading price of a candle is to the highest high of the range selected the closer to zero the %R reading will be.
• The closer the closing gold trading price of a candle is to the lowest low of the range selected the closer to -100 the % R reading will be.

When doing technical analysis a trader should ignore the minus sign placed before the value, for examples -40, the - sign should be ignored, just remember the indictor values are placed in an upside down manner.

• At zero: If the closing gold trading price of the candle is equal to the highest high of the range the Williams % R reading will be 0.
• At -100: if the closing gold trading price of the candle is equal to the lowest low of the range the Williams %R reading will be -100.

William Percent R Technical Indicator

Oversold/Overbought Levels on Indicator

• Overbought- Williams %R values from 0 to -20 are considered overbought while
• Oversold- William %R values from -80 to -100 are considered oversold.

As for trading overbought/oversold levels it is best to wait for a xauusd to change direction before taking a signal in the opposite direction. For Example if a xauusd is oversold it is best to wait for the xauusd trend to reverse and start to head in an upward direction before buying the xauusd.

XAUUSD Trend Reversal XAUUSD Signals

The William %R indicator used to predict a xauusd trend reversal signal when trading a xauusd. The Williams % R indicator always predict a reversal using the following method

Bearish Reversal XAUUSD Signal- William Percent Range indicator forms a peak and turns down a few days before the gold price trend peaks and turns down. The example shown below shows %R giving a reversal xauusd signal before gold trading price starts to head down and change to a down gold trend.

Bearish Reversal XAUUSD Signal after XAUUSD Trading Uptrend

Bullish Reversal XAUUSD Signal- William Percent Range indicator forms a trough and turns up a few days before the gold price trend bottoms and turns up.

Bullish Reversal XAUUSD Signal after XAUUSD Trading Downtrend