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Williams %R

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%R

An inverted stochastic on a −100…0 scale; above −20 is overbought, below −80 oversold.

−20−80OverboughtOversold

How to read it

Williams %R is an inverted momentum oscillator running from 0 at the top to −100 at the bottom. Above −20 is overbought, below −80 oversold — the same idea as stochastic, flipped upside down.

Trading signals

Rising up out of −80 (leaving oversold) is a common long cue; dropping below −20 a short/exit. As with every oscillator, in a strong trend %R can hug the extreme for a while — combine it with a trend filter.

Parameters

Period is the high–low lookback. A shorter period reacts faster but whipsaws more; a longer one is steadier but slower to signal.

Williams %R Period
Lookback for the highest-high / lowest-low range.