Williams' Percent Range

Williams’ Percent Range Technical Indicator (%R)

Williams’ Percent Range Technical Indicator (%R) is a dynamic indicator that helps determine if the market is overbought or oversold. It is similar to the Stochastic Oscillator, but with an upside-down scale and no internal smoothing.

Interpreting Indicator Values

Indicator values between 80 and 100% suggest an oversold market, while values between 0 and 20% indicate an overbought market.

Waiting for Price Change

It is advisable to wait for the security’s price to change direction before making trades based on overbought or oversold signals. For example, if the indicator shows an overbought condition, it is wise to wait for the security’s price to decline before selling.

Anticipating Reversals

The Williams’ Percent Range indicator has a notable ability to anticipate reversals in the security’s price. It often forms a peak and turns down a few days before the price peaks and turns down, and vice versa.

1.33001.3400-20-80

%R 14 EURUSD · H1

In MetaTrader Williams' Percent Range runs from 0 to -100, with the levels -20 and -80.

Calculation of Williams’ Percent Range

%R = (MAX(HIGH, N) - CLOSE) / (MAX(HIGH, N) - MIN(LOW, N)) * -100

Where:

• MAX(HIGH, N) is the highest high over the last N bars;
• MIN(LOW, N) is the lowest low over the last N bars;
• CLOSE is the close of the current bar.

In MetaTrader the indicator ranges between 0 and -100. Use negative values in your trading signals: above -20 is overbought, below -80 is oversold.