Williams Percent R Trading Analysis & Williams Percent R Trading Signals

William % R Indicator Developed by Larry William

William % R indicator is pronounced as William's percent R indicator. Williams %R Indicator is a momentum oscillator used to analyze overbought and oversold levels in the 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 is from 0 to -100 and the indicator does not apply a smoothing 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 selected number of n candlesticks.

• The closer the closing 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 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 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 candle is equal to the lowest low of the range the Williams %R reading will be -100.

William Percent R 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 overbought/oversold levels it is best to wait for gold to change direction before taking a signal in the opposite 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 % R indicator always predict a reversal using the following method

Bearish Reversal Signal- William % Range indicator forms a peak & turns down a few days before the price 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.

Bearish Reversal Gold Trade Signal after Uptrend

Bullish Reversal Signal- William % Range indicator forms a trough and turns up a few days before the price trend bottoms & turns up.

Bullish Reversal Gold Trade Signal after Downtrend