The Williams Percent Range Indicator Strategy (Williams %R)
The Williams %R strategy developed in 1966 by Larry Williams. Its purpose is to help
identify overbought and oversold positions in the market.
This indicator is categorized as an “oscillator” because the values vary between zero
and “-100”. The indicator chart usually has lines drawn at both the “-20” and “-80” values
as alert signals. Values between “-80” and “-100” are interpreted as a strong oversold
condition, or “selling” signal, and between “-20” and “0.0”, as a strong overbought
condition, or “buying” signal.
The Williams %R strategy gives you the following signals:
When the indicator has a value above 80 - that's a sell signal.
When the indicator has a value below 20 - that's a sell signal.
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