Developed by Larry Williams, Williams % R is a momentum indicator that determines overbought and oversold zones, which oscillates between minus one hundred and zero.
The indicator compares the highest and lowest point within a number of periods. The overbought zone is between minus twenty and zero, which means that the price is close to the highest point of the range. It will be oversold when it lies between minus a hundred and minus eighty, therefore, being close to the lowest point of the range.
We can make use of the overbought and oversold zones to generate buy and sell signals. When the Williams R lies in the oversold zone, it can reverse upwards or have a correction, which produces a buy signal. However, when it is in the overbought zone, it would generate a sell signal.
What strategies or Bottrex is available for this indicator?
- Abaixo do Valor: When or current value estiba abaixo do value that you defined.
- Acima do Valor: When or current value estima acima do value that you defined.
- Ascendant Crossing: When or current value to cross to the top of the value that you defined. Ex .: Present value at 30. No previous candle was at 29, depois subiu e cruzou os 30 e foi para o 31, it could mean one entry. This option includes a safety limiter for buying when or at the current value of the current indicator with a value of + 10, for example: it is defined as a value of 30, or its safety limiter will be 40 if it is going to be ordered or current value. estiver abaixo de 40.
- Descending Cross: When or current value to cross for the value that you defined. Ex .: Present value at 30. No previous candle was at 31, depois desceu e cruzou os 30 e foi para o 29, it could mean one entry.