Williams %R

AAA

DEFINITION of 'Williams %R'

In technical analysis, this is a momentum indicator measuring overbought and oversold levels, similar to a stochastic oscillator. It was developed by Larry Williams and compares a stock's close to the high-low range over a certain period of time, usually 14 days.

Williams %R

INVESTOPEDIA EXPLAINS 'Williams %R'

It is used to determine market entry and exit points. The Williams %R produces values from 0 to -100, a reading over 80 usually indicates a stock is oversold, while readings below 20 suggests a stock is overbought.

RELATED TERMS
  1. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  2. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  3. Oversold

    1. A condition in which the price of an underlying asset has ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Stochastic Oscillator

    A technical momentum indicator that compares a security's closing ...
  6. Appraised Equity Capital

    The excess of the market value of an asset over its book value. ...
Related Articles
  1. Is Natural Gas About to Tank?
    Chart Advisor

    Is Natural Gas About to Tank?

  2. How is the Accumulative Swing Index ...
    Charts & Patterns

    How is the Accumulative Swing Index ...

  3. What are the differences between a bar ...
    Charts & Patterns

    What are the differences between a bar ...

  4. How is accumulation area calculated?
    Charts & Patterns

    How is accumulation area calculated?

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center