Williams %R (Williams Percent Range)

Williams %R is a momentum oscillator developed by Larry Williams. It measures overbought and oversold levels, oscillating between 0 and -100. It is essentially an inverted Stochastic Oscillator and is particularly useful for identifying potential reversal points.

Williams %R compares the current close to the highest high over a lookback period:

%R = ((Highest High - Close) / (Highest High - Lowest Low)) * -100

When %R is near 0, the close is near the period high. When near -100, the close is near the period low.

• -20 to 0 — Overbought zone. Price is near recent highs.
• -100 to -80 — Oversold zone. Price is near recent lows.
• -50 — Midpoint, often acts as dynamic support/resistance.

Buy signals

• %R crosses above -80 from below (leaving oversold zone)
• %R rises from -100 area with increasing volume
• Bullish divergence: price makes lower low, %R makes higher low

Sell signals

• %R crosses below -20 from above (leaving overbought zone)
• %R falls from 0 area with decreasing volume
• Bearish divergence: price makes higher high, %R makes lower high

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Lookback period for highest high / lowest low |

| Condition | Meaning | |-----------|---------| | WILLIAMSR(14) < -80 | Williams %R is in oversold zone | | WILLIAMSR(14) > -20 | Williams %R is in overbought zone | | WILLIAMSR(14) cross_over -80 | Exiting oversold (buy signal) | | WILLIAMSR(14) cross_under -20 | Exiting overbought (sell signal) |

• Williams %R and Stochastic %K move inversely but convey the same information
• Best used in ranging markets; in strong trends it can stay overbought/oversold
• Combine with support/resistance levels for higher probability trades
• A 14-period setting works well for daily charts; use shorter for intraday
• Look for divergences as the strongest signal type