Indicator - Williams' %R
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Definition Williams' %R
The parameter is the number of days used in calculation of %R.((high on n period-today's close)/(high on n period-low on n period))*(-100)
Interpretation Williams' %R
Williams' %R is an overbought/oversold indicator. Values -80 and -20 can be used as limits to detect overbought/oversold situations.
Nevertheless, it is better to wait for a change in the price direction, which can be detected for instance through MACD indicator analysis, before buying or selling. Note that when %R makes a peak and reverses, a price decline often takes place.
