MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

Williams' %R oscillator, attributed to Larry Williams, is a variation of the stochastics indicator previously discussed. Because the two oscillators are essentially the same, only minor modifications to the formula are required. The formula for calculating %R is: %R = Hn – C / Hn – Ln where Hn = highest high of the period, C = Close of the current period and Ln = lowest low of the period.

The %R oscillator differs from the %K formula in the stochastics indicator because the outcome of each formula is inverse to the other. In other words, %K compares the close with the lowest low, whereas %R compares the close with the highest high. Similar to other oscillators, %R is plotted with horizontal zones of 20% and 80%. When the indicator has a reading of -80% or below it signifies an oversold condition. Similarly, a reading of -20% or above signals an overbought condition.

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## 4 thoughts on “Trader's Toolbox: Williams %R”

1. cost price c1.
cost price c2;
c1/c2=c;
c-cost productuion;
v-cource dollar.
q-cost energy in town;
q2-cost energy in country.
q/q2=a;
thank you for mesges.

2. ALAN SHAWN says:

this is one of my most reliable indicators which i use all the time in my stock trading. i use 15 minute time intervals and it is just like watching a horse race in slow motion, with the oversold area being the starting line and the overbought area being the finish line.

3. elkojohn says:

I think the Williams-%R works very well together with the Donchian Price Channels set on 15.
This combination is one of the best I have found in watching for reversals and change in trends.

4. EUGENE says:

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