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 up side down on a negative scale that's from 0 to -100 and the technical indicator doesn't apply a smoothing out factor.
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 and selected number of n candlesticks.
- The closer the closing price of a candle is to the highest high of the range chosen the closer to zero the % R reading and value will be.
- The closer the closing price of a candle 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 readings are placed in an up side down kind of manner.
- At zero: If the closing price of the candle is equal to the highest high of the range the Williams % R reading and value will be 0.
- At -100: if the closing price of the candle 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 Trading Indicator
- Overbought- William Percent R values from 0 to -20 are considered and regarded overbought while
- Oversold- William Percent R values from -80 to -100 are considered and regarded over-sold.
As for overbought/oversold levels it is best to wait for gold to change direction before taking a signal in the in the opposite trend market trend market trend market trend market trend market trend market trend market trend direction. For Example if gold is oversold it is best to wait for the trend to reverse & 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 predicts 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 price begins to head down and change to a down-trend.
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.
Bullish Reversal Gold Trade Signal after Downtrend
Learn More Tutorials:
- MetaTrader 5 XAU/USD Indicators Insert Menu on MT5 Insert Menu Options
- Trade with Alligator Technical Indicator Strategies
- Best XAU USD Indicators Combination & Best XAU USD Indicators Guide
- How Can I Open a Real MT5 XAU/USD Account in MetaTrader 5?
- One of the Best XAU USD Account Deposit Bonus Including Lot Rebates & Gold Cash Back
- What's the Interpretation of Gold Charts?
- Why Host Your EA XAU/USD EA Expert Advisor Bots with VPS Provided by Your Gold Broker Only
- XAUUSD Define a Gold Trend on Gold Charts
- List of Best Technical XAU USD Indicators for Gold
- How Can I Trade DeMarks Projected Range Trading Indicator Sell Trade Signal?