Williams Percent R Technical Analysis and Williams Percent R MetaTrader 5 Indicator

Williams %R Technical Indicator Developed by Larry Williams

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Indicator is a momentum oscillator MetaTrader 5 forex indicator MetaTrader 5 forex indicator used to analyze overbought and oversold levels in the forex markets.

The Williams % Range oscillator MetaTrader 5 forex indicator MetaTrader 5 forex indicator is similar to the Stochastic Oscillator MetaTrader 5 Forex Indicator, apart from that fact that the %R is drawn upside down on a negative scale that is from 0 to -100 and the MT5 forex indicator does not apply a smoothing factor.

Williams %R, Percent R Technical Indicator - Forex Indicators

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

• The closer the closing forex price of a candlestick is to the highest high of the range selected the closer to zero the %R reading will be.
• The closer the closing forex price of a candlestick 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 example -40, the - sign should be ignored, just remember the indictor values are placed in an upside down manner.

• At zero: If the closing forex price of the candlestick is equal to the highest high of the range the William %R reading will be 0.
• At -100: if the closing forex price of the candlestick is equal to the lowest low of the range the William %R reading will be -100.

Technical Analysis of Williams % R Technical Forex Indicator

Overbought/Oversold Levels on FX Trading Indicator

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

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

Forex Trading Trend Reversal Signals

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

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

Bearish Reversal Signal after Forex Uptrend

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

Bullish Reversal Signal after Forex Downtrend