Williams %R
Original schematic showing the guide's principal visual relationships.
%R = −100 × (Highest High − Close)/(Highest High − Lowest Low).
Formula and components
A bounded oscillator locating the close within the recent high-low range on a −100 to 0 scale.
%R = −100 × (Highest High − Close)/(Highest High − Lowest Low).
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
Readings above −20 are near the range high and below −80 near the range low. Failure swings can show weakening momentum.
Practical example
Williams %R near −10 means the close sits near the top of its recent range; near −90 means it sits near the bottom. Extreme readings can persist, so a threshold exit is stronger when price also breaks structure.
Confirmation checklist
Compare the current reading with its centerline, thresholds, prior swing, and price action. Crossovers and divergences are context clues, not standalone entries.
Limitations and false signals
Like stochastic, %R can remain extreme throughout a strong trend and should not be used as an automatic reversal command.
Limitations and false signals
Frequently asked questions
What does this pattern or indicator describe?
A bounded oscillator locating the close within the recent high-low range on a −100 to 0 scale.
How should the signal be confirmed?
Readings above −20 are near the range high and below −80 near the range low. Failure swings can show weakening momentum. Compare the current reading with its centerline, thresholds, prior swing, and price action. Crossovers and divergences are context clues, not standalone entries.
What can cause a false signal?
Like stochastic, %R can remain extreme throughout a strong trend and should not be used as an automatic reversal command.