Williams %R

What is 'Williams %R'

Williams %R, in technical analysis, 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

BREAKING DOWN '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. Ultimate Oscillator

    A technical indicator invented by Larry Williams that uses the ...
  2. Oscillator

    A technical analysis tool that is banded between two extreme ...
  3. Overbought

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

    An oversold bounce is a rally in prices that occurs due to the ...
  5. Oversold

    1. A condition in which the price of an underlying asset has ...
  6. Dynamic Momentum Index

    An indicator used in technical analysis that determines overbought ...
Related Articles
  1. Forex Education

    Stochastic Oscillator

    The idea behind this indicator is that the closing prices should predominantly close in the same direction as the prevailing trend.
  2. Trading Strategies

    Relative Strength Index (RSI)

    Learn more about this technical momentum indicator that determines whether an asset is overbought or oversold.
  3. Insurance

    Exploring Oscillators and Indicators: Stochastic Oscillator

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The stochastic oscillator is another well-known momentum indicator used in technical analysis. The idea behind this indicator ...
  4. Trading Strategies

    Know the Forces At Play Behind The Buy/Sell Cycles

    Weekly Stochastics uncovers patterns of buying and selling pressure that can be predicted and capitalized upon by observant investors and traders.
  5. Active Trading Fundamentals

    Market Breadth: 52-Week Highs/Lows

    Because of the broad market implications and forceful nature of new 52-week highs/lows, market technicians keep a close eye on this statistic. The field of technical analysis has designed a ...
  6. Trading Strategies

    Do You Have The Right Settings On Your Stochastic?

    Use these helpful tips to unlock Stochastics' full potential.
  7. Fundamental Analysis

    What Does Oversold Mean?

    The term oversold has several applications for an asset’s price.
  8. Active Trading

    An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.
  9. Fundamental Analysis

    How Do You Use the Stochastic Oscillator?

    A stochastic oscillator is a technical momentum indicator that compares a security's closing price to its price range over a given time period.
  10. Forex Education

    Combined Forces Power Forex Snap Strategy

    Stochastic and MACD oscillators can help isolate greater opportunities in range-bound markets.
RELATED FAQS
  1. Why is the Williams %R oscillator important for traders and analysts?

    Understand the technical momentum indicator Williams %R and how it is commonly utilized by traders and market analysts to ... Read Answer >>
  2. What is the Williams %R oscillator formula and how is it calculated?

    Learn the formula for calculating the Williams %R indicator, an oscillator similar to the stochastic oscillator, and the ... Read Answer >>
  3. What are the main differences between the Williams %R & Ultimate Oscillator?

    Read about the technical changes Larry Williams made to his trading tools, from the Williams %R oscillator to the Ultimate ... Read Answer >>
  4. What are the main differences between Williams %R & The Stochastic Oscillator?

    Learn about the Williams %R oscillator and how this momentum indicator differs from the stochastic oscillator, including ... Read Answer >>
  5. What is a common strategy traders implement when using the Williams %R?

    Learn about Williams %R and how this momentum oscillator is used by investors to pinpoint potential reversals and plan for ... Read Answer >>
  6. How do I use Williams %R oscillator to create a forex trading strategy?

    Learn about the Williams %R oscillator and how investors use divergent signals between price and momentum to create trade ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center