Tools & IndicatorsWilliams %R
OscillatorsEasy[ MP.IND.WILLIAMS__R ]
Williams %R
Williams Percent Range
Williams %R, developed by Larry Williams in 1973, is a momentum oscillator that measures overbought and oversold levels on an inverted scale from -100 to 0.
Category
Oscillators
Difficulty
Easy
Markets
Forex, Stocks, Futures
Timeframe
1H, 4H
Combinations
2 tools
Signals
5 setups
LIVE CHARTWilliams %R ACTIVE
[ HOW TO READ THE CHART ]
Green Zone: %R above -20 → Overbought: possible short setup (confirm with structure)
Red Zone: %R below -80 → Oversold: possible long setup
Main Line: %R starts rising from < -90 → Anticipatory bullish signal (1-2 candles before reversal)
Confluence: Combine Williams %R with MACD for maximum probability
[ WHAT TO WATCH ON THE CHART ]
Observe how Williams %R behaves relative to key price points. Note moments when the indicator reaches extreme levels and how price reacts. Look for divergence patterns between the indicator and price movement.[ FORMULA ]
%R = ((Highest High - Close) / (Highest High - Lowest Low)) × -100 Oscillates between -100 (oversold) and 0 (overbought)
What signals does Williams %R generate?
%R above -20 → Overbought: possible short setup (confirm with structure)
%R below -80 → Oversold: possible long setup
%R starts rising from < -90 → Anticipatory bullish signal (1-2 candles before reversal)
Cross of -50 upward → Bullish momentum change
%R/price divergence → Probable reversal
What is Williams %R and how does it work?
Williams %R, developed by Larry Williams in 1973, is a momentum oscillator that measures overbought and oversold levels on an inverted scale from -100 to 0. Its concept is essentially identical to Stochastic %K but with the scale flipped. The peculiarity of Williams %R, noted by Williams himself, is that it tends to anticipate price reversals by 1-3 bars before they happen: when %R starts rising from extreme values (-80 or worse), price often follows in subsequent candles. This anticipatory characteristic differentiates it from many other oscillators that only confirm what price has already done.
How do you use Williams %R in trading?
Williams %R is used in three contexts:
1) OVERBOUGHT/OVERSOLD: Above -20 = overbought (potential short), below -80 = oversold (potential long). The negative scale often confuses beginners: -90 is VERY oversold, -10 is VERY overbought. Don't make the mistake of inverting the logic.
2) ANTICIPATING REVERSALS: When %R reaches levels below -80 and starts rising (while still in the zone), price typically follows in the next 1-2 candles. This is the most powerful signal of Williams %R: the 'pre-rotation' of the oscillator before price reversal.
3) -50 LINE CROSS: The central line at -50 divides bull territory (above -50) from bear territory (below -50). Crossing this line is a momentum change. On Daily, this cross has good reliability as a trend change confirmation.
What are the strengths of Williams %R?
Often anticipates reversals by 1-2 candles
Simple to read
Fast in signals compared to Stochastic
What are the limitations of Williams %R?
Negative scale confuses beginners
Many false signals without a trend filter
Does not indicate trend strength
[ RELATED INDICATORS ]
[ RELATED CONTENT ]
Glossary:Divergence
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