William Percent R XAUUSD Technical Analysis and William Percent R XAUUSD Signals
Williams %R Technical XAUUSD Indicator Developed by Larry Williams
Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Gold Indicator is a momentum oscillator used to analyze overbought and oversold levels in the gold markets.
The Williams % 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 Gold Indicator - XAUUSD Indicators
The Williams %R indicator analyzes the association of the closing xauusd prices relative to the High and Low range over a selected number of n candlesticks.
- The closer the closing gold 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 gold 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 xauusd trader should ignore the minus sign placed before the value, for example -40, the - sign should be ignored, just remember the indictor values are placed in an upside down manner.
- At zero: If the closing gold 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 gold price of the candlestick is equal to the lowest low of the range the William %R reading will be -100.
William Percent R Technical XAUUSD 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 xauusd to change direction before taking a signal in the opposite direction. For Example if a xauusd is oversold it is best to wait for the xauusd trend to reverse and start to head in an upward direction before buying the xauusd.
XAUUSD Trend Reversal XAUUSD Signals
The William %R indicator used to predict a xauusd trend reversal xauusd signal when trading a xauusd. The Williams %R indicator always predict a reversal using the following method
Bearish Reversal XAUUSD Signal- William Percent Range indicator forms a peak and turns down a few days before the gold price xauusd trend peaks and turns down. The example shown below shows %R giving a reversal xauusd signal before gold price starts to head down and change to a down gold trend.
Bearish Reversal XAUUSD Signal after XAUUSD Trading Uptrend
Bullish Reversal XAUUSD Signal- William Percent Range indicator forms a trough and turns up a few days before the gold price xauusd trend bottoms and turns up.
Bullish Reversal XAUUSD Signal after XAUUSD Trading Downtrend