Williams %R

Williams %R is a momentum indicator that measures how far from the equilibrium level a share price is. Williams %R can assume values between 0 and 100. Williams %R consists of only one graph and this graph is inverted compared to the stochastic in terms of overbought and oversold levels.

In williams %R, values lower than 20 represent overbought levels and values higher than 80 represent oversold levels. Commonly, the williams %R-curve is calculated for 10 days. When the williams %R value rises above 20 from a lower level a sell signal is triggered and when the williams %R falls below 80 from a higher level a buy signal is triggered.