What Is Williams %R (%R)?
Williams %R is a momentum oscillator that measures overbought and oversold levels on a scale of 0 to -100.
Quick Answer
Williams %R is a momentum oscillator that measures overbought and oversold levels on a scale of 0 to -100.
What Does %R Measure?
Williams %R was developed by Larry Williams. It is essentially an inverted Stochastic oscillator, measuring where the closing price sits relative to the high-low range over a lookback period. Readings from 0 to -20 indicate overbought conditions, while readings from -80 to -100 indicate oversold conditions. Because it uses the same underlying math as Stochastic but with inverted scaling, Williams %R provides a familiar framework for timing entries and exits. VaultCharts offers Williams %R as a free subpane indicator on desktop charts.
%R = ((Highest High - Close) / (Highest High - Lowest Low)) × -100How to Read %R
- 1Readings above -20 suggest overbought conditions
- 2Readings below -80 suggest oversold conditions
- 3Rising %R from oversold territory can signal bullish momentum
- 4Falling %R from overbought territory can signal bearish momentum
How to Use %R in Trading
%R Settings
| Setting | Default | Description |
|---|---|---|
| Period | 14 | Lookback period for high-low range calculation |
Common Mistakes to Avoid
Use %R in VaultCharts
VaultCharts includes Williams %R with customizable settings. Combine it with our automated pattern detection and trade signals for better analysis.