Williams %R, also known as the Williams Percent Range, is a momentum oscillator developed by Larry Williams to indicate overbought and oversold conditions in a financial market, such as stocks, currencies, or commodities. The indicator ranges from 0 to -100 and is similar to the Stochastic Oscillator, but it is plotted in reverse, so that readings above -20 are considered overbought, while readings below -80 are considered oversold.The Williams %R is calculated by subtracting the highest high over a given lookback period from the current closing price, and then dividing that value by the highest high minus the lowest low over the same period. The resulting value is then multiplied by -100 to create a value that ranges from 0 to -100.Like other technical indicators, the Williams %R should not be relied upon solely in making trading decisions, as other factors such as market volatility, economic data releases, and geopolitical events can also impact market prices. Instead, it should be used in conjunction with other indicators and analysis to form a complete trading strategy.
