What is Williams %R?

What is Williams %R: A chart indicator/oscillator used in the technical analysis of financial markets. Its primary purpose is to track market momentum, trend strength, and overbought/oversold conditions.

Category: Technical analysis indicator

How is Williams %R Used: The Williams %R is a momentum oscillator that compares the most recent closing price of a stock, ETF, or other market/instrument, to a range of its prices over a given period of time. This oscillator is very similar to the Stochastic oscillator (though there is only one line compared to the two used in the Stochastic oscillator) and is typically utilized in the same manner. It is most often used to generate and/or confirm trade entry and exit signals, determine overbought/oversold conditions, and find price-oscillator divergences.

What Does Williams %R Consist of: Williams %R is presented as one line fluctuating between 0-100. Typically, values above 80 indicate overbought or overvalued conditions, which may signal an impending downside trend reversal or corrective pullback in price. Values below 20 indicate oversold or undervalued conditions, which may signal an impending upside trend reversal or corrective rebound in price. The indicator is usually placed either above or below the price chart.

What Does Williams %R Look Like:

Chart of Williams %R
Chart of Williams %R – Source: TheTechnicals.com and TradingView

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