How do traders use Williams %R?

Above −20 is overbought; below −80 is oversold. It is very fast, so it is often combined with a trend filter. A move out of the oversold zone is a common timing signal.

Momentum oscillators

Williams %R

Williams %R shows where the close is within the last 14 candles' range, on a scale of 0 to −100.

How to read it

Above −20 is overbought; below −80 is oversold.
It is very fast, so it is often combined with a trend filter.
A move out of the oversold zone is a common timing signal.

Settings

Default 14.

Example rule to test

Rule to test: in an uptrend (above 50 EMA), buy when %R rises above −80.

Common mistake

Trading it alone; it gives many signals.

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For learning only. Backtests use past data and do not guarantee future results. Not investment advice.