Williams %R
Williams %R shows where the close sits relative to the high and low of the last 14 periods, on a scale from −100 to 0.
It was devised by Larry Williams and is very similar to the stochastic, but with an inverted scale: 0 means a close at the period's high, −100 a close at the low.
How it's calculated
Williams %R = (14-period high − close) / (14-period high − 14-period low) × −100.
Worked example
Over the last 14 days the high is €60, the low €48 and today the stock closes at €57: Williams %R = (60 − 57) / (60 − 48) × −100 = 3 / 12 × −100 = −25.
How to read it
Between −20 and 0 the stock is considered overbought, between −80 and −100 oversold. As with the stochastic, in a strong trend it can stay in one of the two zones for a long time.
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