Williams% R, developed by Larry Williams, is a momentum indicator that is the inverse of the Fast Stochastic Oscillator. Williams% R, also referred to as% R, reflects the close relative to the highest peak for the review period. In contrast, the Stochastic Oscillator reflects the closing level from the lowest to the lowest. % R corrects the inversion by multiplying the raw value by -100. As a result, Fast Stochastic Oscillator and Williams% R produce exactly the same lines but with different scaling. Williams% R is released from 0 to -100; Readings from 0 to -20 are considered oversold, while readings from -80 to -100 are considered oversold. Not surprisingly, signals derived from the Stochastic Oscillator are also valid for Williams% R.
Interpretation
As with the Stochastic Oscillator, gold signals  Williams% R reflects the level of proximity relative to the high-low range over a specified period. Suppose the highest equals 110, the lowest equals 100, and the closer equals 108. The high-low range is 10 (110 - 100), which is the denominator in the R% formula. The highest highest minus close equals 2 (110-108), which is divided by 10 and results in 0.20. Multiply this number by -100 to get -20 for R%. If the close were 103, Williams would have R -70% (((110-103) / 10) x -100).
The centerline -50 is an important level to follow. Williams% R moves between 0 and -100, making -50 midpoint. Think of this as football's 50 yard line. There is a higher chance of scoring when the offense crosses the 50-yard line. The defense has an advantage as long as it prevents the attack from crossing the 50 yard line. The Williams% R cross above -50 indicates that prices are trading in the upper half of the high-low range for this review period. This indicates that the glass is half full. Conversely, a cross below -50 means that prices are trading in the lower half of the given lookback period. This indicates that the glass is half empty.
Low readings (below -80) indicate that the price is close to the low for a certain period of time. High readings (above -20) indicate that the price is close to high for a certain period of time. The IBM example above shows three 14-day intervals (yellow areas) with the closing price at the end of the period end (red dot) line. When the closing is at the top of the range, Williams% R equals -9. When the closing is close to the bottom of the range, Williams% R equals -87. Close equals -43 when the close is in the middle of the range.
Overbought / oversold
As a connected oscillator, gold trading signals  Williams% R makes it easy to identify overbought and oversold levels. The oscillator is between 0 and -100. No matter how fast a security advances or decreases, Williams% R will always fluctuate in this range. Conventional settings use -20 as the overbought threshold and -80 as the oversold threshold. These levels can be adjusted to suit analytical needs and security features. Readings above -20 for the 14-day Williams% R indicate that the underlying security is trading near the top of the 14-day high-low range. Readings below -80 occur when a security is traded at the lower end of the high-low range.
 
Before looking at some chart examples, it is important to note that the overbought readings do not necessarily show a bearish trend. Securities can be overbought and overbought during a strong uptrend. Closing levels that are consistently near the top of the range point to constant buying pressure. Similarly, oversold readings are not necessarily bullish. Securities may also be oversold and oversold during a strong downtrend. Closing levels that are consistently close below the range point to constant selling pressure.
 
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 Williams% R ile düzenli olarak aşırı alım ve aşırı satım seviyelerine ulaşan Arch Coal (ACI) gösteriyor. Kırmızı noktalı çizgiler, aşırı alım okumasından sonra meydana gelen -50'nin altındaki bir hareketi gösterir. Yeşil noktalı çizgiler, aşırı satım okumasından sonra meydana gelen -50'nin üzerinde bir hareketi işaretler. Yukarıda belirtildiği gibi, aşırı alım mutlaka düşüş anlamına gelmez ve aşırı satım mutlaka yükseliş eğilimi göstermez. Üst ve alt toplayıcılar aşırı alım veya aşırı satım durumunda hareket edebilir, ancak genellikle bir onay hamlesi için beklemek akıllıca olur. -50'nin altındaki bir hareket, aşırı satın alınan bir okumadan sonra bir gerilemeyi doğrular. -50'nin üzerindeki bir hareket, aşırı satım okumasından sonra yükselişi doğrular.
 
Williams% R is a momentum oscillator that measures the closing level relative to the high-low range over a specified period of time. In addition to the signals mentioned above, graphists can use R% to gauge the six-month trend of a security. R% 125 per day covers about 6 months. Prices are above their 6-month averages when the% is above -50%, which is consistent with the uptrend. Values below -50 are consistent with the downtrend. In this context,% R can be used to help identify the greater trend (six months). Like all technical indicators, it is important to use Williams% R in conjunction with other technical analysis tools.

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