Williams’ Percent Range (R)

The formula to calculate Williams’ Percent Range oscillator is similar to the one used to calculate the Stochastic Oscillator:

%R = (MAX (HIGH (i — n)) — CLOSE (i)) / (MAX (HIGH (i — n)) — MN (LOW (i — n))) * 100

Where:
CLOSE (i) — the current close price;
MAX (HIGH (i — n)) — the highest top over the previous n periods;
MIN (LOW (i — n)) — the lowest bottom over the previous n periods.

The values of the Williams’ Percent Range (%R) oscillator lie between 0 and -100%. If the oscillator is between -80% to -100%, it denotes an oversold condition, whereas values in the range from 0% to -20% signify an overbought condition.

Signals:

• bullish divergence / bearish convergence — the main signals that point to the weakness of the current trend;
• in a flat market an exit from the overbought / oversold area is a signal to sell / buy.