Williams' Percent Range

Williams’ Percent Range Technical Indicator (%R)

Williams’ Percent Range Technical Indicator (%R) is a dynamic technical indicator, which determines whether the market is overbought/oversold.

Indicator Values

Indicator values ranging between -80% and -100% indicate that the market is oversold. Indicator values ranging between -0% and -20% indicate that the market is overbought.

Upside Down Scale

To show the indicator in this upside down fashion, one places a minus symbol before the Williams’ Percent Range values (for example -30%). One should ignore the minus symbol when conducting the analysis.

Wait for Price Change

As with all overbought/oversold indicators, it is best to wait for the symbol price to change direction before placing your trades.

Anticipating Reversals

An interesting phenomenon of the Williams’ Percent Range indicator is its uncanny ability to anticipate a reversal in the underlying security’s price. The indicator almost always forms a peak and turns down a few days before the security’s price peaks and turns down. Likewise, Williams Percent Range usually creates a trough and turns up a few days before the security’s price turns up.