Williams Percent R

Technically a stochastic, Williams %R signals overbought and oversold conditions by calculating the relationship of the close to a range of prices. The scale in Williams %R is reversed, running from -100 to 0. When the %R line is above -20, overbought conditions exist; conversely, when the %R line is below -80, oversold conditions exist.

Formula:

Where:

n = number of periods

highn = highest high in n periods

lown = lowest low in n periods

Parameters

Parameter

Function

Color

Default color is yellow. To change the color, click on the color button:

Then choose the color you want from the Color Menu.

Graph

Sets the drawing method for the study.

Option	Function
Bars	Renders the study as bars.
Dots	Renders the study as dots.
Dotted	Renders the study as dots.
Histogram	Renders the study as a histogram drawn from 0.
Line (Default)	Renders the study as a line.
Not Drawn	The study is not rendered.

Line Style

Sets the rendering technique of the graph parameter (if it is set to Line).

Option	Function
Dash-Dot	--l-l-l-l-l-l-
Dash-Dot-Dot	----ll----ll----
Dashed	- - - - - - - - - - - - - - -
Dotted	llllllllll
Solid (Default)	-------------------------

Line Width

Sets the tickness of the study line.

Option	Function
1 pixel (Default)
2 pixels
3 pixels
4 pixels
5 pixels

Period

see, Larry R. Williams, How I Made $1,000,000 Trading Commodities Last Year, 3rd Ed., Monterey CA: Conceptual Management, 1979; see also, Murphy, John J., Technical Analysis of the Futures Markets, A Comprehensive Guide to Trading Methods and Applications, New York: New York Institute of Finance, A Prentice-Hall Company, 1986, pp. 309-310.