William Percent R Oil Technical Analysis & William Percent R Trading Signals

Williams %R Technical Oil Technical Indicator Developed by Larry William

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Technical Indicator is a momentum oscillator used to analyze overbought and oversold levels in the 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 Percent R, Percent R Technical Indicator - Oil Indicators

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

• The closer the closing crude price of a candle is to the highest high of the range selected the closer to zero the %R reading will be.
• The closer the closing crude price of a candle 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 price of the candle is equal to the highest high of the range the William % R reading will be 0.
• At -100: if the closing crude price of the candlestick is equal to the lowest low of the range the William % R reading will be -100.

William Percent R Technical Indicator

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

Oil Trend Reversal Signals

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

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

Bearish Reversal Oil Trade Signal after Uptrend

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

Bullish Reversal Oil Trade Signal after Trade Downtrend