Williams Percent R CFD Technical Analysis and Williams Percent R CFD Signals

Williams %R Technical CFD Indicator Developed by Larry Williams

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical CFDs Indicator is a momentum oscillator used to analyze overbought and oversold levels in the cfds trading 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 is from 0 to -100 and the indicator does not apply a smoothing factor.

Williams %R, Percent R Technical CFDs Indicator - CFDs Indicators

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

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

Williams Percent R Technical Indicator

Overbought/Oversold Levels on Indicator

• Overbought- Williams % R values from 0 to -20 are considered overbought while
• Oversold- Williams % R values from -80 to -100 are considered oversold.

As for trading overbought/oversold levels it is best to wait for a cfd instrument to change direction before taking a signal in the opposite direction. For Example if a cfd instrument is oversold it is best to wait for the cfd trend to reverse and start to head in an upward direction before buying the cfd.

CFD Trend Reversal CFDs Signals

The William %R indicator used to predict a cfd trend reversal signal when trading a cfd. The William % R indicator always predict a reversal using the following method

Bearish Reversal CFD Signal- Williams Percent Range indicator forms a peak and turns down a few days before the cfd price trend peaks and turns down. The example explained and illustrated below shows %R giving a reversal cfd signal before cfd price starts to head down and change to a down cfds trend.

Bearish Reversal CFD Signal after CFD Trading Uptrend

Bullish Reversal CFD Signal- Williams Percent Range indicator forms a trough and turns up a few days before the cfd price trend bottoms and turns up.

Bullish Reversal CFD Signal after CFD Trading Downtrend