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Williams %R

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 27 Apr 2023

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Williams %R

Williams %R, also known as the Williams Percent Range, is a technical indicator used in the analysis of financial markets. It is used to measure overbought and oversold levels in the market, and is calculated by subtracting the most recent closing price from the highest high of the past N periods, and then dividing the result by the highest high minus the lowest low of the same N periods. The resulting value is then multiplied by -100 to give the Williams %R value. A reading of -100 indicates that the most recent closing price is the lowest low of the past N periods, while a reading of 0 indicates that the most recent closing price is the highest high of the past N periods.

History of Williams %R

Williams %R was developed by Larry Williams, a renowned trader and author. He introduced the indicator in his book, โ€œNew Strategies for Stock Market Profitsโ€, in 1973. The indicator is based on the idea that prices tend to close near their highs when the market is in an uptrend, and near their lows when the market is in a downtrend. By measuring the distance between the most recent closing price and the highest high of the past N periods, Williams %R can be used to identify overbought and oversold levels in the market.

Comparison Table

Williams %R Most Recent Closing Price Highest High of Past N Periods Lowest Low of Past N Periods
-100 Lowest Low Highest High Lowest Low
0 Highest High Highest High Lowest Low

Summary

Williams %R is a technical indicator used to measure overbought and oversold levels in the market. It is calculated by subtracting the most recent closing price from the highest high of the past N periods, and then dividing the result by the highest high minus the lowest low of the same N periods. The resulting value is then multiplied by -100 to give the Williams %R value. For more information about this term, you can visit Investopedia, TradingView, and StockCharts.com.

See Also

  • Relative Strength Index (RSI)
  • Stochastic Oscillator
  • Commodity Channel Index (CCI)
  • Average Directional Index (ADX)
  • Bollinger Bands
  • Moving Average Convergence Divergence (MACD)
  • On Balance Volume (OBV)
  • Accumulation/Distribution Line (ADL)
  • Chaikin Money Flow (CMF)
  • Price Volume Trend (PVT)

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