{"id":9606,"date":"2022-10-12T08:13:35","date_gmt":"2022-10-12T08:13:35","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9606"},"modified":"2022-10-12T08:13:35","modified_gmt":"2022-10-12T08:13:35","slug":"how-to-use-williams-r-williams-percent-range","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/how-to-use-williams-r-williams-percent-range\/","title":{"rendered":"How to Use Williams %R (Williams Percent Range)"},"content":{"rendered":"\n

The\u00a0Williams Percent Range<\/strong>, also called\u00a0Williams %R<\/strong>, is a momentum\u00a0indicator\u00a0that shows you\u00a0where the last closing price is relative to the highest and lowest prices<\/em>\u00a0of a given time period.<\/p>\n\n\n\n

As an oscillator,\u00a0Williams %R\u00a0tells you when a currency pair might be \u201coverbought<\/strong>\u201d or \u201coversold<\/strong>.\u201d<\/p>\n\n\n\n

Think of it as a less popular and more sensitive version of\u00a0Stochastic.<\/p>\n\n\n\n

\"Williams<\/a><\/figure>\n\n\n\n

As a\u00a0momentum indicator, it also gives RSI-like vibes in that it measures the strength of a current trend.<\/p>\n\n\n\n

But while\u00a0RSI\u00a0uses its mid-point figure (50) to determine trend strength, traders use %R\u2019s extreme levels (-20<\/strong>\u00a0and\u00a0-80<\/strong>) for cues.<\/p>\n\n\n\n

How to Trade Forex Using the Williams %R Indicator<\/h2>\n\n\n\n

Did you know that Stochastic and %R use the same formula to pinpoint the relative location of a currency pair?<\/p>\n\n\n\n

The only difference is that Stochastic shows you a relative location by using the lowest price<\/em> in a time range while %R uses the highest price<\/em> to pinpoint the closing price\u2019s position.<\/p>\n\n\n\n

In fact, if you invert the %R line, it will have the EXACT SAME LINE as Stochastic\u2019s %K line!<\/p>\n\n\n\n

This is why Williams %R uses the 0 to -100<\/strong> scale while Stochastic is scaled from 0 to 100.<\/strong><\/p>\n\n\n\n

A reading above -20 <\/strong>is OVERBOUGHT<\/strong>.<\/p>\n\n\n\n

A reading below -80 <\/strong>is OVERSOLD.<\/strong><\/p>\n\n\n\n

An overbought or oversold reading does NOT guarantee that the price will reverse.<\/p>\n\n\n\n

All \u201coverbought\u201d means the price is near the highs of its recent range.<\/strong><\/p>\n\n\n\n

The same goes for oversold. All \u201coversold\u201d means the price is near the lows of its recent range.<\/strong><\/p>\n\n\n\n

Determining Trend Strength Using %R<\/h2>\n\n\n\n

Williams %R\u2019s sensitivity to volatile prices comes in handy when you want to know if prices are maintaining their\u00a0bullish\u00a0or\u00a0bearish\u00a0momentum.<\/p>\n\n\n\n

In EUR\/USD\u2019s daily chart below, you can see that the\u00a0pair\u00a0tried to extend its uptrend but failed to reach a new price and %R highs.<\/p>\n\n\n\n

This means that prices aren\u2019t hitting the high end of their range as quickly as they did before and that the bullish momentum might be running out of steam.<\/p>\n\n\n\n

In this case, the pair ended up dropping 200 pips in a week!<\/p>\n\n\n\n

\"Williams<\/a><\/figure>\n\n\n\n

Almost immediately after that, the price gained enough bullish momentum to push %R above its oversold levels.<\/p>\n\n\n\n

But although\u00a0EUR\/USD\u00a0is still poppin\u2019 up red candlesticks, they\u2019re not enough to drag Williams %R back to its previous lows.<\/p>\n\n\n\n

Another loss of momentum?<\/p>\n\n\n\n

Williams %R sure thought so!<\/p>\n\n\n\n

Turned out, the bulls DID take over and pushed EUR\/USD around 775 pips higher in less than 30 days.<\/p>\n\n\n\n

Now that\u2019s good oscillating right there. No wonder superfans call Williams %R as \u201cThe Ultimate Oscillator!\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The\u00a0Williams Percent Range, also called\u00a0Williams %R, is a momentum\u00a0indicator\u00a0that shows you\u00a0where the last closing price is relative to the highest and lowest prices\u00a0of a given time period. As an oscillator,\u00a0Williams %R\u00a0tells you when a currency pair might be \u201coverbought\u201d or \u201coversold.\u201d Think of it as a less popular and more sensitive version of\u00a0Stochastic. As a\u00a0momentum […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[887],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9606"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9606"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9606\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}