Williams %R Indicator

Description

The Williams %R indicator was developed by Larry Williams as a way to measure momentum. %R is defined over a certain number of prints, 10 days being the value Williams originally used, while 14 days is more commonly used today. However this indicator can be used with any time period. To calculate %R for each print, the following values are needed:

  • The highest high over the defined period
  • The lowest low over the defined period
  • The current close

%R is calculated for each print using the following equation:

Williams %R = [(Highest High - Close) / (Highest High - Lowest Low)] * (-100)

The value of %R oscillates between 0 and -100. Generally, the negative sign is ignored when discussing %R values. The security is considered to be overbought when value of %R is above 80 (or -80). The security is considered to be oversold when the value is below 20 (or -20).