Williams % R or you can say Williams percentage range, is a Momentum indicator that helps traders in analysing the security price using the overbought and over-sold levels. In this article, I will cover everything about Williams % R and how you can use this indicator to place profitable trades.
Williams % R Wiki
Williams % R was founded by one of the most popular American author and trader name Larry Richard Williams.
Larry Richard Williams (born October 1962) is an American author, stock and commodity trader plus a political candidate in the state of Montana during 1970 – 80. Larry has created multiple Masterpiece indicators including Williams % R, ultimate oscillator, cot indices, cycle forecast, market sentiment and value measurement for commodity prices.
Larry is the world worldwide most popular trader he won the World Cup Championship of futures and trading from the Robin Trading Company where he turned $10,000 into $1,10,000 in a 12-month competition with real money. 10 years later his daughter who is also an actress Michelle Williams won the same contest his son Jason who is also a psychiatrist wrote a book on the personality of winning traders named The Mental Age in Trading.
Key Points
- Williams % R is a Momentum indicator that helps traders analyse the security price.
- The indicator is made from a moving average line that oscillates around line 0 to – 100.
- When the indicator readings are above -20 you can say that the price is in overbought condition similarly when readings are below -80 you can say the price is in oversold condition.
How to add Williams % R Indicator on Pocket Option
In order to add the Williams % R indicator on the Pocket Option follow the steps given below
Step 1: Log in to your Pocket Option account. You can even use this Indicator on the Pocket Option demo account. In case, you don’t have access to your trading account use this link.
Step 2: Once you have logged in you will land on the Pocket Option trading dashboard
Step 3: Click on the Indicator button at the top of the page and search for the indicator in the list
Step 4: Click the indicator name and a popup will appear.
Step 5: Lastly, make necessary amendments based on your trading nature. Reducing the indicator period will make the indicator more sensitive while increasing the indicator period will be suitable for swing traders.
How to place trades with Williams % R
Solo Indicator: You can find trends and place trades with a solo Williams % R indicator. In the Solo indicator you just need to focus on the moving average line when the readings are above -20 you can say that the price is in overbought condition similarly when readings are below -80 you can say that the price is in oversold condition.
Combination with other trend indicators: Using a solo Williams % R is not a bad idea however if you want results better results with the indicator you should combine Williams % R with other trend indicators like WMA.
When you find a bullish signal with Williams % R plus the WMA line is below the price it signals a bullish trend and you can place a buy trade similarly, When you find a bearish signal with Williams % R plus the WMA line is above the price it signals a bearish trend and you can place a sell trade here.