Williams %R


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


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.

  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Oversold

    1. A condition in which the price of an underlying asset has ...
  3. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  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. Qualitative Analysis

    Securities analysis that uses subjective judgment based on nonquantifiable ...
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  1. What are the best technical indicators to complement the Williams %R oscillator?

    The Williams %R oscillator is one of a number of momentum indicators that investors use to help identify strong trends and ... Read Full Answer >>
  2. What are the main differences between Williams %R oscillator & The Relative Strength ...

    Both the Williams %R oscillator and the relative strength index (RSI) are momentum indicators, but they differ greatly in ... Read Full Answer >>
  3. What is the Williams %R oscillator formula and how is it calculated?

    The Williams %R oscillator, developed by noted technical analyst Larry Williams, is a momentum indicator similar to the stochastic ... Read Full Answer >>
  4. What are the main differences between the Williams %R & Ultimate Oscillator?

    Larry Williams developed the Williams %R oscillator in the 1960s as a way to measure the closing price of an asset within ... Read Full Answer >>
  5. What are the main differences between Williams %R & The Stochastic Oscillator?

    Both the Williams %R and the stochastic oscillator are used to measure trend momentum and compare the current session's closing ... Read Full Answer >>
  6. What is a common strategy traders implement when using the Williams %R?

    Many investors use momentum indicators, such as the Williams %R, to help pinpoint potential trend reversals. The most common ... Read Full Answer >>
  7. How do I use Williams %R oscillator to create a forex trading strategy?

    Momentum oscillators such as the Williams %R indicator are used in the forex market to determine the strength of a current ... Read Full Answer >>
  8. Why is the Williams %R oscillator important for traders and analysts?

    The Williams %R indicator is significant in that is provides evidence of markets which are overbought or oversold and generates ... Read Full Answer >>
  9. What are the best technical indicators that complement the STARC Bands?

    Some of the best technical indicators to complement use of the STARC bands are other oscillators or momentum indicators and ... Read Full Answer >>

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