Williams %R

%R · module 18 of 33 · momentum

Where the close sits relative to the n-candle high, on a −100 to 0 scale.

Williams %R on a chart

EUR/USD · 1h · demo data

An inverted stochastic: near 0 the close is at the top of the range, near −100 at the bottom.

How to apply it

1. Add it. Start with 9 on 1m/5m (Scalping).
2. Read the market first. Stays near 0 in uptrends; treat readings above −20 as strength, not a sell.
3. Adjust for ranges. Moves out of the −80/−100 zone at a confirmed support level are the intended long timing.
4. Manage the trade. Place the stop at 1.5 × ATR and the target at 3.5 × ATR, and only act when the chart above shows the trigger.

%R = −100 × (Highn − C) ÷ (Highn − Lown).

Stays near 0 in uptrends; treat readings above −20 as strength, not a sell.

Moves out of the −80/−100 zone at a confirmed support level are the intended long timing.

These are conventional starting points, not optimised values. Test any change on your own pair and timeframe before relying on it.

14-candle high 1.0920, low 1.0860, close 1.0872: %R = −100 × (0.0048/0.0060) = −80. The close is near the bottom of the recent range.

On 5m NZD/USD in a downtrend, %R read below −80 for 90 minutes while price fell another 30 pips. Buying each 'oversold' reading produced five losses.

Stacking these produces agreement by construction, which is not confirmation.

Plot %R(14) and Stochastic %K(14) together and confirm they are mirror images. Use this to justify removing one from your workspace.

1. Williams %R at 0 means:

The numerator becomes zero when the close equals the highest high of the lookback.

2. %R is mathematically almost identical to:

Both express the close's position within the lookback range; %R uses a negative scale.