Williams %R in Forex
A clear definition of Williams %R, with practical context for reading markets and making better trading decisions.
Definition
Williams %R is a momentum oscillator developed by Larry Williams that compares the current close with the recent high-low range.
Scale
The indicator typically moves from 0 to -100. Readings near 0 mean the close is near the top of the recent range; readings near -100 mean it is near the bottom. Levels around -20 and -80 are commonly used as overbought and oversold references.
Interpretation
Like Stochastic, Williams %R can remain extreme during strong trends. The oscillator is most useful when its momentum information aligns with support, resistance, range structure, or a confirmed change in price behaviour.
Key Takeaway
Williams %R measures where the close sits within the recent range. Extreme readings are not automatic reversal signals.
Practical forex example
Why Williams %R matters
Understanding Williams %R helps traders interpret market information, plan decisions, and manage risk with more context.
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