The Williams Percent Range (Williams %R) is an oscillator that shows the deviation of an asset’s price from the average values over a certain period. Using this indicator, you can determine the overbought and oversold moments of an asset.
To use the Williams %R levels in a trading, it is important to track the following:
- Overbought level: -20.
- Oversold level: -80.
When Williams %R indicator crosses the -80 level in the bottom-up direction, it is a buy signal. It indicates the asset’s exit from the oversold zone and a possible set of positive momentum.
When Williams %R indicator crosses the -20 level in the top-down direction, it is a sell signal. It is a sign of the asset’s exit from the overbought zone and a possible set of negative momentum.
It is important to remember that no indicator guarantees success in trading. Before making a decision on a deal, it is recommended to make an additional market analysis and assess the risks.
