WR%
The Williams% R oscillator is similar to the stochastic oscillator in that it compares the current closing price with the highest intraday value of the recent range. It is an index related to the momentum of a stock.
The formula for calculating the index is as follows:
% R = ((H14 β ???? C) / (H14 β ???? L14)) 100
where, C is the current closing price, H14 is the highest intraday price of
last 14 days and L14 is the lowest intraday price of the last 14 days.
Williams% R oscillates between -100 and 0. A reserved range is considered to be the band above -20 and the zone below -80 is overvalued.
The Wiliams% R oscillator is not used to give immediate sales signals but to identify peaks and bottoms of real prices.
The movement of this indicator precedes the stock movement, that is, if the stock is over-booked the index starts and falls before the stock starts to fall, while if it is oversold it starts and rises before the stock rises. That is why it is a good idea to use this ratio in combination with other technical analysis tools before deciding to buy or sell stocks.
IMPORTANT
This index is not suitable for long-term investor targets.
The shaded gray areas on the diagonal re-chart and your oscillator indicate exactly what I mentioned above, that the key function of WR% is to identify peaks and bottoms just before they become apparent in the values.
It is integrated with MT4.
Let's look at another example in the SPX500 index.
SYNOPSIS OF OTHERS
The Williams% R oscillator is similar to the stochastic oscillator with
difference that compares the current closing price with its highest intraday value
recent price range. It is an index related to the momentum of a stock.
difference that compares the current closing price with its highest intraday value
recent price range. It is an index related to the momentum of a stock.
The movement of this index precedes the movement of the stock, ie if the stock
the index is up and down before the stock starts to fall, and if
is overdrafted starts and goes up before the stock rises. For him
exactly why it is a good idea to use this indicator in conjunction with
other technical analysis tools before deciding to buy or sell stocks.
OBSERVATION
the oscillator has the property to create double peaks within the over-the-top and over-the-top areas by producing orbital displacement and inversion.
it is quite sensitive and can be combined with other strong indicators such as e.g. the RSI.
the index is up and down before the stock starts to fall, and if
is overdrafted starts and goes up before the stock rises. For him
exactly why it is a good idea to use this indicator in conjunction with
other technical analysis tools before deciding to buy or sell stocks.
OBSERVATION
the oscillator has the property to create double peaks within the over-the-top and over-the-top areas by producing orbital displacement and inversion.
it is quite sensitive and can be combined with other strong indicators such as e.g. the RSI.
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