William % Indicator

William indicator Indicator, calculated according, ordinary trend analysis, oversold asset, situations are uncommon, prevailing trend, a signal of weakness , price reaching routine lows.

The Williams Percent Indicator (%R) was invented by Larry Williams and is used to prove that an asset is overbought/oversold and to identify possible turning points in a trend. Different from the stochastic indicator, the William indicator has a line under it, which is calculated according to the inverted scale.

Use of William % Indicator

The William Percent indicator can be used to determine overbought/oversold conditions for an asset, but this indicator needs to be used together with ordinary trend analysis:

1-The indicator exceeds the -20 level – the possibility of the asset being overbought;

2-Indicator below -80 level – possibility of oversold asset.

Indicators leave the overbought/oversold range – a possible sign of a trend turn:

1-The indicator crosses the overbought range from top to bottom – a sell signal;

2-The indicator crosses the oversold range from bottom to top – a buy signal.

Divergence situations are uncommon, but may prove to be weakness of the prevailing trend:

1-Indicator fluctuations do not support the price reaching its usual maximum value – a signal of weakness in the upward trend;

2-Indicator fluctuations did not support the price reaching routine lows – a sign of weakness in the downtrend.

William % Indicator

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