# Williams %R

> Williams %R is a momentum oscillator ranging from -100 to 0 that identifies overbought and oversold zones, used as a signal filter in Veles bots.

**Williams %R** or **%R** is a technical indicator created by Larry Williams.
It shows the position of the current price relative to the range of highs and lows for a selected period.

The indicator helps identify:
- **overbought** zones,
- **oversold** zones,
- potential **trend reversal points**.

## How %R Works

Values range from **-100** to **0**:

- **Close to -100** → the asset is oversold.
- **Close to 0** → the asset is overbought.

Click the **"Pencil"** button to set the desired parameters.

When no value specified:
- **For a long bot**: entry when %R < -20, exit when %R > -80
- **For a short bot**: entry when %R > -80, exit when %R < -20

## Main Applications

### 1. Signal Confirmation

Use **%R** along with other indicators (such as Moving Averages or support/resistance levels) to confirm trade entries.

### 2. Overbought and oversold

- Values **above -20** → the asset is overbought (possible downward reversal).
- Values **below -80** → the asset is oversold (possible upward reversal).

## %R Levels

Two levels are typically used for analysis:

- **-20** — overbought zone.
- **-80** — oversold zone.

Signals:

- Crossing the **-80** level from the **bottom to top** → Buy signal (exiting oversold zone).
- Crossing the **-20** level from the **top to bottom** → Sell signal (exiting overbought zone).

:::tip[Tip]
Williams %R does not guarantee profitable trades.
It's best to use it in conjunction with other analysis tools and consider the overall market situation.
:::

## Using in Veles Bots

On the Veles platform, Williams %R is available as a filter with configurable level thresholds.

- **For a Long bot**: entry when %R exits the oversold zone (crosses -80 from below), exit when %R exits the overbought zone (crosses -20 from above).
- **For a Short bot**: entry when %R exits the overbought zone (crosses -20 from above), exit when %R exits the oversold zone (crosses -80 from below).

Click the **"Pencil"** button in the indicator settings to set custom threshold values.

## Using in Veles Bots (Flexible Indicator)

Available settings:

- Period - the number of candles for calculation. Range: 7–100, default 14.
- Interval - the candle timeframe.
- Method - the calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
- Shift - shifts the requested indicator value back by the specified number of candles.

## Limitations

- %R can remain in overbought or oversold zones for extended periods during strong trends, generating early reversal signals.
- On short timeframes, the indicator produces frequent noise — pairing with a trend filter is recommended.
- The inverted scale (0 to -100) can be counterintuitive; always verify the signal direction before using.

## Summary

Williams %R is a fast and responsive oscillator for identifying price extremes within a given period. In Veles bots, it serves as a clean overbought/oversold filter — most effective when combined with a trend indicator to ensure entries align with the broader market direction.