Oscillators: Williams’ Percent Range (R)

The values of the Williams’ Percent Range (%R) oscillator lie between 0 and 100.

If the oscillator is between 80% to 100%, it denotes an oversold condition, whereas values in the range from 0% to 20% signify an overbought condition.

The formula to calculate Williams’ Percent Range oscillator is similar to the one used to calculate the Stochastic Oscillator:

%R = (MAX (HIGH (i - n)) - CLOSE (i)) / (MAX (HIGH (i - n)) - MIN (LOW (i - n))) * 100

Where:

• CLOSE (i) - the current close price;
• MAX (HIGH (i - n)) - the highest top over the previous n periods;
• MIN (LOW (i - n)) - the lowest bottom over the previous n periods.

Williams’ Percent Range (%R) oscillator signals:

• bullish divergence / bearish convergence – the main signals that point to the weakness of the current trend;
• in a flat market an exit from the overbought / oversold area is a signal to sell / buy.

To add Williams’ Percent Range index in MetaTrader 4 use the "Insert -> Indicators -> Oscillators -> Williams’ Percent Range, %R" menu sequence.

Williams’ Percent Range index:

Warning: This document does not constitute an offer or a recommendation to enter into any transaction. All views and statements expressed are believed to be true and accurate when published. Any person relying on this information to trade does so entirely at his/her own risk. The markets can be very volatile. Prices may move rapidly against you, and past performance is not necessarily a guide to future performance.