Trade Gold Trading

Williams Percent R Trading Analysis & Williams Percent R Trading Signals

William % R Indicator Developed by Larry William

William Percent R indicator is pronounced as Williams percent R trading indicator. Williams %R Indicator is a momentum oscillator trading used to analyze over-bought and over-sold levels in the markets.

The Williams Percentage Range oscillator trading is similar to the Stochastic Oscillator Indicator Technical indicator, apart from that fact that the Percent R is drawn upside down on a negative scale that's from 0 to -100 and the technical indicator does not apply a smoothing factor.

William Percent R Indicator - Williams Percent Range Indicator PDF

Williams %R, Percent R Technical Indicator - Indicators

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

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

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

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

William Percentage R Indicator

Overbought/Over-sold Levels on Technical Indicator

  • Overbought- William Percent R values from 0 to -20 are considered overbought while
  • Oversold- William Percent R values from -80 to -100 are considered over-sold.

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

Trend Reversal Signals

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

Bearish Reversal Signal- William Percentage Range technical indicator forms a peak and turns down a couple of days before the market trend peaks & turns down. The example depicted and explained below highlights %R giving a reversal gold signal before trading price starts to head down and change to a down-trend.

MetaTrader 4 Williams Percent R Technical Indicator Analysis - Williams Percent R (%R) Trading Strategy

Bearish Reversal Gold Trade Signal after Uptrend

Bullish Reversal Signal- William % Range technical indicator forms a trough and turns up a couple of days before the market trend bottoms & turns up.

How Do I Place Trading Williams Percent R (%R) Indicator in Trading Chart?

Bullish Reversal Gold Trade Signal after Downtrend

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