William Percent R XAUUSD Technical Analysis & William Percent R XAUUSD Signals
Williams %R Technical XAU/USD Indicator Developed by Larry Williams
Williams % R indicator is pronounced as Williams percent R indicator. Williams Percent Range Indicator is a momentum oscillator technical indicator used to analyze over-bought and oversold levels in the markets.
The Williams Percent R oscillator is similar to the Stochastic Indicator, apart from the fact that the % R is drawn up-side downward on a negative scale that's from 0 to -100 and the indicator doesn't apply a smoothing out factor.
William %R, Percent R Indicator - XAUUSD Indicators
The William % R technical indicator analyzes the association of the closing prices compared to the High & Low range over a selected and chosen number of n candles.
- The closer the closing price of a candlestick is to the highest high of the range chosen and selected the closer to zero the Percentage R reading and value will be.
- The closer the closing price of a candlestick is to the lowest low of the range chosen the closer to -100 the % R value will be.
When doing trading analysis a xauusd/gold trader should ignore the minus(-) sign placed before the value, for examples -40, the - sign should be ignored, just remember indicator values are placed in an up-side down kind of manner.
- At zero: If the closing price of the candle is equivalent to the highest high of the range the Williams % R reading and value will be 0.
- At -100: if the closing price of the candlestick is equivalent to the lowest low of the range the William %R reading and value will be -100.
William Percent R Technical Indicator
Over-sold/Overbought Levels in Indicator
- Overbought- Williams %R values from 0 to -20 are regarded and considered overbought while
- Oversold - William %R values from -80 to -100 are regarded and considered oversold.
As for 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 trend to reverse & start to head in an upward direction before buying the xauusd.
XAU USD Trend Reversal XAUUSD Signals
The William %R indicator used to predict a trend reversal signal when trading a xauusd. The Williams % R trading indicator always predicts a reversal using the following method
Bearish Reversal XAUUSD Signal- Williams Percent Range technical indicator forms a peak and turns down a couple of days before the market trend peaks and turns down. The example shown below shows %R giving a reversal signal before price starts and begins to head down and change to a down trend.
Bearish Reversal XAUUSD Signal after Gold Uptrend
Bullish Reversal XAUUSD Signal- Williams Percent R indicator forms a trough & turns up a couple of days before the market trend bottoms and turns up.
Bullish Reversal Gold Signal after XAUUSD Trading Downtrend
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