Williams %R — Indicator dictionary

An indicator that shows, as a number from −100 to 0, how far today’s close sits below the highest price of recent candles.

Weapon tier: Standard
Slots used: Sub-charts 1/2
Created by: Larry Williams · 1973

Concept

Williams %R measures, within the range between the highest and lowest prices of the last 14 candles, how far below the top the current close is. A close at the high gives 0; a close at the low gives −100.

The panel shows a single line with dotted lines at −80 and −20. Above −20 is often read as “overbought” and below −80 as “oversold”. The negative values can be confusing, but higher on the panel always means the close is nearer the top.

Williams %R

Charts by TradingView Lightweight Charts™

During the shaded stretch the line stuck to the bottom and the price kept falling. This chart was chosen as a scene where the price rose after the line came back above −80; falling again afterwards is common too. Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.

How it is calculated

Find the highest high and the lowest low of the last 14 candles.

Williams %R = −100 × (highest high − current close) ÷ (highest high − lowest low).

It is written as −100 to 0 instead of 0 to 100, but it has the same shape as the “Stochastic %K” of the same period minus 100.

Parameters

What it sets	Name in the game	Default	Range
Candles over which to find the highest and lowest prices	period	14	2 – 100

Trading ideas

Leaving oversold: when the line has been below −80 and then climbs back above it, it is commonly read as the price starting to lift off the bottom. The chart on this page shows that scene.

Overbought works the other way: when the line falls from above −20 back below it, the buying pressure is seen as fading.

Common traps

In a strong trend the line sticks above −20 or below −80 for a long time. Trading the other way just because it is there fights the trend.
It reacts quickly, so the line swings roughly. Do not decide on one or two candles.
The chart on this page was chosen as a scene where the price rose after the signal. Read it together with the trend (lesson 2) and volume.

In the game

“Williams %R” is a “Standard” weapon and uses 1 of the “Sub-charts” panels (limit 2). Volume in the starting setup already uses 1, so adding Williams %R brings it to 2 (0 left).
The panel shows a single line and dotted lines at −80 and −20.

Related indicators and lessons

RSI — An indicator that compares recent up moves with recent down moves and shows, as a number from 0 to 100, which side has been stronger lately.
Stochastic — An indicator that shows, on a scale of 0 to 100, where today’s close sits between the lowest and the highest price of the last few candles.
SONAR — An indicator that draws how much an exponential moving average has risen (or fallen) compared with a few candles ago, to read the “slope” of the trend.
TRIX — An indicator that shows by what percent, per candle, a very smooth line — an exponential moving average stacked three times — rises or falls.
CCI — An indicator that shows how many times its usual swing the price has moved away from its recent average.
ROC — An indicator that connects into a line how many percent the close has risen or fallen compared with the close a few candles ago.
Disparity Index — An indicator that shows, around a baseline of 100, how many percent the close is away from its moving average.
Psychological Line — An indicator that reads the market mood, upbeat or gloomy, from the percentage of recent candles that closed higher.
AB Ratio — An indicator that compares how far each candle rose above and fell below its open, showing which side was stronger during the session.
Ultimate Oscillator — An indicator that blends buying pressure over a short, a medium and a long period into a number from 0 to 100.
2. Trends and sideways moves
1. Reading a single candle