Williams Percent R MT4 Indicator and Williams Percent R Signals

Williams %R MT4 Indicator Developed by Larry Williams

William's %R indicator is pronounced as Williams percent R indicator. Williams %R MT4 Indicator is a momentum MT4 Indicator used to analyze overbought and oversold levels in the markets.

The Williams % Range MT4 Indicator is similar to the Stochastic MT4 Indicator, apart from that fact that the %R is plotted 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 MT4 Indicator - Forex Indicators

The William's %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 MT4 Indicator a 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 price of the candle is equal to the highest high of the range the William's %R reading will be 0.
• At -100: if the closing price of the candlestick is equivalent to the lowest low of the range the Williams %R reading will be -100.

MT4 Indicator of Williams Percent R Indicator

Overbought/Oversold Levels on Indicator

• Overbought- William's Percentage R values from 0 to -20 are considered overbought while
• Oversold- William's Percentage R values from -80 to -100 are considered oversold.

As for overbought/oversold levels it is best to wait for a currency pair to change direction before taking a signal in the opposite direction. For Example if a currency pair is oversold it is best to wait for the market trend to reverse & begin to head in an upwards direction before buying the currency pair.

Trend Reversal Signals

The Williams %R indicator used to predict a trend reversal signal when trading a currency pair. Williams Percent R indicator always predict a reversal using the following technique

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

Bearish Reversal Signal after Uptrend

Bullish Reversal Signal- William's Percentage Range indicator forms a trough & turns up a few days before the price trend bottoms and turns up.

Bullish Reversal Signal after Downtrend