EURUSD 1.1855 USDJPY 111.61 USDCAD 1.2372 EURCZK 26.031 USDCZK 21.952 EURPLN 4.2726 USDPLN 3.6043
EURUSD 1.1855 USDJPY 111.61 USDCAD 1.2372 EURCZK 26.031 USDCZK 21.952 EURPLN 4.2726 USDPLN 3.6043

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The Williams’ Percent Range is used to identify overbought/oversold market conditions and possible trend reversals

Rule of thumb

Williams' Percent Range oscillator will be parallel with the fast line of the Stochastic %K, when the slowing parameter of the %K line is set at a “1” value

Williams’ Percent Range, known also as %R, is a momentum oscillator developed by Larry Williams. Its formula is largely based on Stochastic Oscillator construction, as both indicators compare the current market price with extreme historic levels. The only difference is that for %R the point of reference is set  to historical minimums, while the Stochastic refers to historical highs.

 

williams, percentage, r

 

The consequence of the %R formula adopted is that in comparison with the Stochastic it has an “upside down” scale - meaning, the top value will be 0 while the lowest value is -100, as the values of the %R range from 0 to -100, i.e. have negative values. Another consequence of the formula is that Williams’ Percent Range can also be considered as non-smoothed of the fast line of the Stochastic Oscillator.

 

The interpretation of the %R indicator is similar as in the case of the Stochastic. It provides information on the overbought/oversold market conditions, typically being  in the range of above -20 and below -80 respectively. It is also claimed to be a leading indicator that tends to peak before actual prices peak, and the opposite tends to apply for price lows.

 

How to use it with MetaTrader 5:

  • Select a chart where Williams’ Percent Range shall be applied.
  • Go to: Insert - Indicators - Oscillators - Williams’ Percent Range.
  • Select the time frame to apply for this oscillator, eg. 14 periods.
  • The Williams’ Percent Range indicator will be automatically calculated by MetaTrader 5, and presented below the chart with prices.

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