What is Williams’ Percent Range? Profitable Forex Trading Indicators

What is Williams’ Percent Range?
 
      Williams’ Percent Range Indicator is referred as %R. It is one of the dynamic technical indicators, which determines while the market is overbought oversold condition and %R is same as to the Stochastic Oscillator indicator. The main difference is William’s percent Range has an upside down scale and the Stochastic Oscillator has domestic smoothing.

      If the indicator range is in between 80-100% then it determines the oversold position. Thus the same indicator range is in between 0-20% then it determines the overbought position.

      The Trading Calculation of %R is also similar to Stochastic Oscillator.

Williams’ Percent Range Calculation:

           %R = (HIGH (i-n)-CLOSE)/(HIGH(i-n)-LOW(i-n))*100

CLOSE - today’s closing price.
HIGH(i-n) - Highest high over a number (n) of previous period.
LOW(i-n) - Lowest low over a number (n) of previous periods.