Williams Percent R Analysis and Williams Percent R MT5 Indicator
Williams %R Indicator Created by Larry Williams
William's %R trading indicator is pronounced as Williams percent R indicator. Williams %R Indicator is a momentum oscillator MT5 indicator MT5 indicator used to analyze overbought and oversold levels in the forex markets.
The Williams % Range oscillator MT5 indicator MT5 indicator is similar to the Stochastic Oscillator Technical MT5 Indicator, apart from that fact that the %R is drawn upside down on a negative scale that is from 0 to -100 and the MT5 indicator does not apply a smoothing factor.
William %R, Percent R Indicator - Indicators
The Williams %R trading indicator analyzes the association of the closing prices relative to the High & Low range over a chosen number of n candle sticks.
- The closer the closing price of a candlestick 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 candle is to the lowest low of the range chosen the closer to -100 the %R reading will be.
When doing analysis a forex trader should ignore the minus sign placed before the value, for example -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 candlestick 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 equal to the lowest low of the range the William's %R reading will be -100.
Analysis of Williams % R Indicator
Overbought/Over-sold Levels on Trading Indicator
- Overbought- Williams Percent R values from 0 to -20 are considered overbought while
- Oversold- Williams Percent R values from -80 to -100 are considered over-sold.
As for forex overbought/oversold levels it is best to wait for a currency pair to change direction before taking a signal in the opposite trend direction. For Example if a currency pair is over-sold it is best to wait for the forex trend to reverse and start to head in an upward direction before buying the currency pair.
Forex Trend Reversal Signals
The William %R indicator used to predict a trend reversal signal when forex trading a currency pair. William's Percentage R indicator always predict a reversal using the following technique
Bearish Reversal Signal- Williams Percent Range trading indicator forms a peak and turns down a few days before the forex price trend peaks and turns down. The example below shows %R giving a reversal signal before forex price starts to head down and change to a down-trend.
Bearish Reversal Signal after Uptrend
Bullish Reversal Signal- Williams Percent Range trading indicator forms a trough and turns up a few days before the forex price trend bottoms and turns up.
Bullish Reversal Signal after Downtrend
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