Lesson Williams %R:
%R runs on a scale that ranges from 0 to -100 with readings from 0 to -20 considered overbought, and readings from -80 to -100 considered oversold. Typically, Williams %R is calculated using 14 periods and can be used on intraday, daily, weekly or monthly data. When the indicator cracks 50 and heads up, just like RSI this is a bullish area. Readings over -20 are considered high and nearing overbought areas. -10 is a fairly high reading and should show caution, IF this follows other words of caution with other indicators EX. RSI over 80 as well. I like to find stocks that are headed to -80 areas or even -90 to really get the bottom feeders. In addition, I like to find the stocks like SNNW that just broke the -50 line heading up to show a bullish trend for williams %R. Here is a example with SNNW....You see the whole downtrend the %R was deep in the red -90 area and staying put never really breaking until late yesterday and today. Now we are breaking -50 and are currently sitting at -38.2...I use this indicator on daily charts, but can be used the same way for any time frame imho




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I am not a registered broker so please buy and sell on your own choice. These are just my opinions and should not be used for buy/sell signals. Please check out disclaimer for any market awareness for any of the above mentioned stocks.