Williams Percent R Bitcoin Analysis & Williams Percent R Signals
Williams %R Bitcoin Indicator Developed by Larry Williams
Williams %R indicator is pronounced as William percent R indicator. Williams %R Trading Indicator is a momentum oscillator used to analyze overbought and oversold levels in the bitcoin markets.
The William % R oscillator is similar to the Stochastic Oscillator, apart from that fact that the %R is drawn upside down on a negative scale that's from 0 to -100 and the trading indicator doesn't apply a smoothing out factor.
Williams %R, Percent R Technical Indicator - Crypto Indicators
The Williams %R analyzes the association of the closing bitcoin prices relative to the High & Low range over a selected number of n candlesticks.
- The closer the closing bitcoin price of a candlestick is to the highest high of the range chosen the closer to zero the % R reading and value will be.
- The closer the closing bitcoin price of a candle is to the lowest low of the range selected the closer to -100 the %R value will be.
When doing analysis a btc usd trader should ignore the minus sign placed before the value, for example -40, the - sign should be ignored, just remember indicator readings are placed in an upside down kind of manner.
- At zero: If the closing bitcoin price of the candlestick is equal to the highest high of the range the William % R value will be 0.
- At -100: if the closing bitcoin price of the candlestick is equal to the lowest low of the range the William % R reading and value will be -100.
Williams Percentage R Indicator
Over-bought/Oversold Levels on Indicator
- Overbought- Williams Percentage R values from Zero to -20 are considered overbought while
- Oversold- Williams Percentage R values from -80 to -100 are considered and regarded oversold.
As for overbought/oversold levels it is best to wait for bitcoin to change direction before taking a signal in the opposite market direction. For Example if bitcoin is oversold it is best to wait out for the bitcoin trend to reverse & start to head in an upward direction before buying bitcoin crypto.
Bitcoin Trend Reversal Signals
The William %R indicator used to predict a bitcoin trend reversal crypto currency signal when trading bitcoin crypto. William %R indicator always predicts a reversal using the following method
Bearish Reversal Signal- Williams Percent Range trading indicator forms a peak and turns down a few days before the bitcoin price trend peaks and turns down. The example shown below shows %R giving a reversal crypto currency signal before bitcoin price begins to head down and change to a down btcusd trend.
Bearish Reversal Bitcoin Signal after Bitcoin Uptrend
Bullish Reversal Signal- Williams Percent Range trading indicator forms a trough and turns up a few days before the bitcoin price trend bottoms and turns up.
Bullish Reversal Bitcoin Signal after Bitcoin Downtrend
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