Williams %R, or just %R, is a technical analysis oscillator showing the current closing price in relation to the high and low of the past N days (for a given N). It was developed by a publisher and promoter of trading materials, Larry Williams. Its purpose is to tell whether a stock or commodity market is trading near the high or the low, or somewhere in between, of its recent trading range.The oscillator is on a negative scale, from -100 (lowest) up to 0 (highest), considered unusual since it is the obverse of the more common 0 to 100 scale found in many Technical Analysis oscillators. Although sometimes altered (by simply adding 100), this scale needn’t cause any confusion. A value of -100 is the close today at the lowest low of the past N days, and 0 is a close today at the highest high of the past N days.
Williams used a 10 trading day period and considered values below -80 as oversold and above -20 as overbought. But they were not to be traded directly, instead his rule to buy an oversold was
R reaches -100.
Five trading days pass since -100% was last reached
R rises above -95 or -85%.
or conversely to sell an overbought condition
R reaches 0.
Five trading days pass since 0% was last reached
R falls below -5 or -15%.
The timeframe can be changed for either more sensitive or smoother results. The more sensitive you make it, though, the more false signals you will get. The “close-position within a range” in the %R indicator is the same as the %K stochastic oscillator, on a different scale.
period1 = Param( "Period 1", 10, 2, 200, 1 );
period2 = Param( "Period 2", 5, 2, 200, 1 );
GraphXSpace = 3;
R = ((HHV(H,14) - C) /(HHV (H,14) -LLV (L,14))) *-100;
Difference= EMA1 - EMA2;
ZeroLagEMA= EMA1 + Difference;
upbar= PR>= MoveAvg AND PR>= Ref(PR,-1) ;
downbar=(PR < MoveAvg) OR PR>= MoveAvg AND PR< Ref(PR,-1) ;
barcolor = IIf( downbar,colorRed, IIf( upbar, colorBrightGreen, 7));
Graph0BarColor = ValueWhen( barcolor != 0, barcolor );
Title=Name()+" < ZeroLag W%R :"+WriteVal(PR)+"%";
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