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How to Use William and Read This Indicator (Beginners Must Read!)

The Williams Percentage Range, Williams or simply is a technical marker promoted by chart expert and renowned trading person Larry R. Williams in his book, How I Made One Million Dollars Last Year Trading Commodities. Markers have been part of Larry Williams' trading strategy since 1973.

How to Use William%R and Read This Indicator

You can use these markers for different markets like stocks, forex, and cryptocurrencies. This is based on the idea that the price will close at the most recent high when the force moves upwards or the price closes at the most recent low in the timeframe of the downward trend. With this in mind, the Williams %R calculation is attempted using the high, low, and close of the lows. Williams' percentage span method is:

Williams% R=( Highest Large– Close) or( Highest High– Lowest Low) x- 100

The highs and lows are the highest and lowest prices reached during the time frame considered. The usual default setting is 14 timeframes (William uses 10 days in his strategy) related to the program and can be applied to timeframes within the framework of intraday activity or for days, weeks, etc.

The marker shows the position of the last closing price referring to the highest price throughout the lock back time frame. It is considered as a substitute for the stochastic oscillator marker because it has multiple matches. The difference, however, is that stochastics share knowledge of closing price levels in relation to the lowest price for that time span and are plotted with 2 lines, unlike %R. Also, when Williams %R quotes numbers from -100 to 0, stochastics quote numbers from 0 to 100, but the lines of the two markers will oscillate in a similar way.

Williams% R . reading method

The Williams %R marker is a type of bound oscillator marker and will appear at the bottom of your chart as a line that oscillates between the numbers -100 to 0. There are a number of conditions that are obtained in the usual way such as:

  • A marker number that is smaller than -80 would be a symptom of an oversold market situation
  • Numbers above -20 will aim at an overbought market situation
  • A value above -20 proves that throughout the specified timeframe, the legacy has been trading near the top of the high-low range of that timeframe.
  • A figure at the bottom of-80 proves that the instrument is trading at the bottom of the high-low range for the selected timeframe
  • Extreme numbers close to 0 or 0 prove that the price is trading near the highest or above the highest for that time frame
  • The 100-figure proves that the price is trading near or at the bottom of the lowest low, which can be very meaningful for traders and their strategies

It should be noted that when the marker is above-20 or below-80, it does not mean that the price will always turn around after reaching this number. You should know that in a solid uptrend, Williams %R can prove an overbought warning, but price can hold out for a long time in an overbought realm.

Method using the Williams % R . marker

You can also use Williams %R to spot potential signs for a long or short, look for warnings when the %R number crosses the 50-central line or try to spot divergences.

  • In the usual way, traders can enter long trading positions when the %R line crosses the bottom of the-80 figure and goes into oversold conditions
  • A sign of a short position appears when the Williams% R line crosses above the -20 figure and moves in the overbought zone

For Williams, you should buy a hold when the marker articulates at the bottom of -90 during a strong uptrend, while a sell position is opened when the articulation is from -10 to 0 during a downtrend. Let's look at the next diagram.

Profit from Williams trading marker % R

  • Legal for different duration spans
  • Can be used to measure trend power
  • Can be worn as long as styles and markets move sideways
  • It can recognize potential retrogression the moment before the retrogression occurs

Williams% R trading marker limit

  • Overbought and oversold signals are not to be expected as the force may not turn after %R reaches the overbought and oversold zone
  • Based on overbought or oversold alerts, traders can close their positions before the market and run out of their power and run out of profit.

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