Williams %R Definition and Uses

The Williams Percent Range indicator is uncanny in its ability to signal a reversal one to two periods ahead of reality. Traders use the indicator to determine overbought and oversold conditions and reversals in market trends. Williams Percent Range values above and below are worthy of attention. The key points of reference are highpoints and low points. The basic conditions for a transaction are determined by the behavior of the indicator Williams Percent Range in critical areas.

Scheme of signals of the WPR indicator. Most precisely the indicator shows not primary point of entry, namely a signal for replenishment to the strong movement on a trend after corrections. Situations of divergence of the Williams Percent Range with the direction of prices arise relatively rarely, for their formation a rather long period is needed , nevertheless, they are considered to be the strongest trading signal see Using Graphic Tools. The indicator is the most effective for finding turning points complemented with the classical trend tools see Using Indicators. For example, WPR signals successfully outperform the trading signals on the standard Bollinger Bands 20 , which allows you to prepare for the opening of the transaction including direction!

Similarly, effective can be a strategy with a moving average we need a simple one with a period of and WPR 21 with levels and The result?

WPR allows to select the strongest points of entry: we open the transaction after his line is included into critical zones. WPR or the Williams index stably confirms the trends, but the modern speculative market proves that the advanced characteristics of the indicator are greatly exaggerated.

The oscillator does not differ from standard technical analysis tools, and «sick» from the same shortcomings: instant reaction to price fluctuations, the mass of «false» signals during periods of non-standard or the flat market. Sometimes too active dynamics of the WPR indicator is misleading, so the trader should clearly understand the current state of the market. Of course, if you initially correctly defined the direction, then WPR may will be effective as part of complex trading systems as a pulse filter.

After all the sides of the indicator were revealed, it is right the time for you to try either it will become your tool 1 for trading. In order to try the indicator performance alone or in the combination with other ones, you can use Forex Tester with the historical data that comes along with the program. Simply download Forex Tester for free. In addition, you will receive 20 years of free historical data easily downloadable straight from the software.

Share personal experience of effective use of the indicator Williams Percent Range.

Selected media actions

Was this article useful to you? It is important to us to know your opinion. Forex Tester is a software that simulates trading in the Forex market, so you can learn how to trade profitably, create, test and refine your strategy for manual and automatic trading. Forex historical data is a must for back testing and trading. Forex data can be compared to fuel and software that uses this data is like an engine. Quick and simple tool for traders to structure their trading ideas into the EAs and indicators.

• forex dealers in faridabad;
• binary option minimum deposit $1;
• forex market watch online?
• vxx options strategies;
• avatrade binary options!
• nigeria forex traders?
• 10000 forex account?

Assume that the stock of a company closed at In this period, it reached a highest level of and the lowest level of Therefore, the indicator will be:. All you need to know is how to implement it on the trading platform. In this, is an important number because it is the mid-point. Therefore, if the line crosses minus 50, it means that prices are trading in the upper section of their high-low range and vice versa. A move below shows that the price is close to its low for the session while readings above show that the price is near its high.

As we have written before, overbought and oversold levels are not necessarily signs to sell and buy respectively. Always remember that an asset can remain in an overbought or oversold position for days or even months. Now, let us look at a real example of it in use. It does not work well when the price is in consolidation. Second, the key levels to watch are and A move above means that the price is getting overbought while shows that the price is oversold.

Williams %R Definition and Uses

As seen above, the price can remain in an overbought and oversold level for days or months. Therefore, the indicator does not tell you where to buy or sell. Instead, it gives you a feel of the market. A good way to use it to combine it with other indicators like the moving average and the RSI.