Williams %R Oil Technical Analysis and Williams %R Trading Signals

Williams %R Oil Trading Indicator Developed by Larry William

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Crude Oil Technical Indicator is a momentum oscillator used to analyze overbought and oversold levels in the crude oil 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 & the indicator doesn't apply a smoothing factor.

Williams %R, Percent R Technical Crude Oil Indicator - Oil Indicators

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

• The closer the closing crude oil 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 crude oil 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 examples -40, the - sign should be ignored, just remember the indictor values are placed in an upside down manner.

• At zero: If the closing crude oil 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 crude oil price of the candlestick is equal to the lowest low of the range the William %R reading will be -100.

Williams %R Indicator

Oversold/Overbought Levels on Indicator

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

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

Oil Trading Trend Reversal Signals

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

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

Bearish Reversal Oil Trading Signal after Oil Trading Uptrend

Bullish Reversal Trading Signal- Williams %Range indicator forms a trough and turns up a few days before the crude oil price oil trend bottoms and turns up.

Bullish Reversal Oil Trading Signal after Oil Trading Downtrend