William Percent R XAUUSD Technical Analysis & William Percent R XAUUSD Signals
Williams %R Technical XAUUSD Indicator Developed by Larry Williams
Williams Percent R indicator is pronounced as Williams percent R trading indicator. Williams Percent R Indicator is a momentum oscillator technical indicator used to analyze over-bought and oversold levels in the markets.
The Williams Percentage Range 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 indicator doesn't apply a smoothing factor.
William %R, Percent R Technical Indicator - XAUUSD Indicators
The William % R indicator analyzes the association of the closing prices relative to the High and Low range over a chosen number of n candles.
- The closer the closing price of a candle is to the highest high of the range chosen the closer to zero the %R reading 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 reading will be.
When doing trading analysis a xauusd 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 upside down manner.
- At zero: If the closing price of the candle is equivalent to the highest high of the range the Williams % R reading will be 0.
- At -100: if the closing price of the candle is equivalent to the lowest low of the range the William %R reading will be -100.
William Percent R Technical Indicator
Over-sold/Overbought Levels on Indicator
- Overbought- Williams %R values from 0 to -20 are considered overbought while
- Oversold- William %R values from -80 to -100 are considered over-sold.
As for overbought/oversold levels it is best to wait for a xauusd to change direction before taking a signal in the opposite market direction. For Example if a xauusd is oversold it is best to wait for the trend to reverse and start to head in an upward direction before buying the xauusd.
XAUUSD Trend Reversal XAUUSD Signals
The William %R trading indicator used to predict a trend reversal signal when trading a xauusd. The Williams % R trading indicator always predict a reversal using the following method
Bearish Reversal XAUUSD Signal- William 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 to head down and change to a down trend.
Bearish Reversal XAUUSD Signal after XAUUSD Trading Uptrend
Bullish Reversal XAUUSD Signal- Williams Percentage Range technical indicator forms a trough and turns up a couple of days before the market trend bottoms & turns up.
Bullish Reversal XAUUSD Signal after XAUUSD Trading Downtrend
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