Williams %R
Where the close sits in the last N bars' high-low range: 0 at the top, -100 at the bottom.
Williams %R takes the highest high and the lowest low over the last window bars, the current bar included, and places the close inside that range. The value is -100 * (highest high - close) / (highest high - lowest low): 0 when the close is at the window high, -100 when it is at the window low. Because the range scales the result, a narrow window turns small moves into large swings.
How to read it
- The line sits in its own pane below the price, between -100 and 0.
- Near 0 the close is at the top of the recent range; near -100 it is at the bottom.
- Above -20 is the usual overbought band and below -80 the oversold band. With defaults, the top 5% of readings sit at 0 and the bottom 5% at -100.
- A climb back up off -80 or -100 means the close is pulling away from the bottom of its range. It says nothing about the price level.
What it outputs
- Williams %R
- Where the close sits in the last window bars' high-low range: 0 at the window high, -100 at the window low. Blank while the window fills and on a flat window.
Settings
- Window
- Bars the high and low are taken over, including the current bar. Shorter windows make a narrow range, so the line swings between 0 and -100 on small moves. Longer windows widen the range and calm the line, so it stays near the middle more often.
Pitfalls
- The catalog calls it close relative to the recent high, but the value also depends on the window low. A new low changes the range the close is measured against, so it moves the line too.
- Readings pin at the ends: with defaults the bottom 5% of values sit at -100 and the top 5% at 0, so an extreme on its own is not a signal.
- A flat window, where the high equals the low, gives no value. The line breaks there instead of showing 0 or -50. This covers about 0.07% of default bars.