Williams Percent R Metals Analysis & Williams Percent R Trading Signals

Williams %R Metals Technical Indicator Developed by Larry William

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Metal Trading Indicator is a momentum oscillator used to analyze overbought and oversold levels in the metal 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 and the indicator doesn't apply a smoothing factor.

Williams %R, Percent R Technical Metal Indicator - Metals Indicators

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

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

Williams Percent R Indicator

Overbought/Oversold Levels on Technical Indicator

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

Metals Trend Reversal Signals

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

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

Bearish Reversal Metals Trading Signal after Metals Uptrend

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

Bullish Reversal Metals Trading Signal after Metals Downtrend