William Percent R Stock Indices Technical Analysis & William Percent R Stock Indices Signals

Williams %R Technical Stock Indices Indicator Developed by Larry Williams

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Stock Index Indicator is a momentum oscillator used to analyze overbought and oversold levels in the stock index trading markets.

The Williams % 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 & the indicator doesn't apply a smoothing factor.

Williams %R, Percent R Technical Stock Index Indicator - Stock Indices Indicators

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

• The closer the closing stock index 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 stock index 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 stock index 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 stock index price of the candlestick is equal to the lowest low of the range the William %R reading will be -100.

William Percent R Technical Indicator

Overbought/Oversold Levels on Technical Indicator

• Overbought- William %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 stock indices instrument to change direction before taking a signal in the opposite direction. For Example if a stock indices instrument is oversold it is best to wait for the stock indices trend to reverse and start to head in an upward direction before buying the stock indices.

Indices Trend Reversal Stock Indices Signals

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

Bearish Reversal Stock Indices Signal- William Percent Range indicator forms a peak and turns down a few days before the stock index price trend peaks and turns down. The example illustrated below shows %R giving a reversal stock indices signal before stock index price starts to head down and change to a down stock index trend.

Bearish Reversal Stock Indices Signal after Stock Indices Trading Uptrend

Bullish Reversal Stock Indices Signal- William Percent Range indicator forms a trough and turns up a few days before the stock index price trend bottoms and turns up.

Bullish Reversal Stock Indices Signal after Stock Indices Trading Downtrend