Online Trading Concepts

Williams %R

Williams %R

  1. Williams %R Defined
  2. Williams %R and Determining Trend Strength

Williams %R is an overbought and oversold technical indicator that can give easy to interpret buy and sell signals. Williams %R is very similar to the Stochastic Fast indicator (see: Stochastics) as the chart below will illustrate:

Williams %R and Stochastics are similar technical indicators

Like Stochastics, the Williams %R indicator gives easily interpreted buy and sell signals, as is demonstrated in the chart below of the Nasdaq 100 exchange-traded fund QQQQ:

Williams R buy and sell signal

Williams %R Buy Signal

When the Williams %R indicator is below the oversold line (20) and it rises to cross over the 20 line, then buy.

Williams %R Sell Signal

Sell when the Williams %R indicator is above the overbought line (80) and then falls below the 80 line.

In addition to giving clear buy and sell signals, the Williams %R indicator can help identify strong trends; this is discussed on the next page.

Next Page - Williams %R and Determining Trend Strength

The information above is for informational and educational purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, or forex product. Past performance is not necessarily an indication of future performance. Trading is inherently risky. OnlineTradingConcepts.com shall not be liable for any special or consequential damages that result from the use of or the inability to use, the materials and information provided by this site. See full disclaimer.