What is the Williams %R
The Williams %R is a technical indicator used to determine whether a stock or other asset class is overbought or oversold. It gives traders an idea of the momentum of an asset and can help identify potential reversal points in price movement. How does it work? The Williams %R calculates the position of the current closing price relative to the high and low of a given period (14 days by default). The result is expressed as a percentage between -100 and 0. -100: This means that the closing price is equal to the low of the period and the asset is considered very oversold. 0: This means that the closing price is equal to the high of the period and the asset is considered very overbought. How do you interpret the Williams %R? Oversold: When the Williams %R falls below a certain threshold (for example -80), the asset is considered oversold. This can be a signal that the price may rise. Overbought: When the Williams %R falls above a certain threshold (for example -20), the asset is consider...