Williams %R
Williams %R is a momentum indicator that measures overbought and oversold levels. It reflects the level of the close relative to the highest high for the look-back period.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Very sensitive to price changes
- Early warning of potential reversals
- Simple to interpret
Limitations
- Prone to false signals in strong trends
- Can stay in overbought/oversold for long periods
- Needs confirmation from other indicators
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
%R Overbought/Oversold
Sell when %R crosses below -20 from above; Buy when it crosses above -80 from below.
%R Momentum Burst
Buy when %R reaches the -20 level and stays there, indicating strong momentum.
Best For
「Spotting reversals in ranging or trending markets.」
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.