Adapting Williams %R Overbought and Oversold Bands with Bollinger Bands

Summary

This indicator description combines the Williams %R oscillator with Bollinger Band boundaries to define overbought and oversold areas. The band thresholds are intended to adapt to the oscillator’s behavior, rather than relying only on fixed levels. The listed controls set the Williams %R lookback, band deviation, whether band smoothing is used, and a horizontal shift in bars.

The document identifies the indicator and its configurable inputs, but it does not give entry or exit rules, market examples, or evidence from a backtest. It therefore explains a technical-indicator construction, not a complete trading strategy. Traders would need to decide how to interpret band interactions and test the resulting signals across instruments and regimes, including the effects of smoothing and shifting settings.

Key ideas

• The indicator places Bollinger Band boundaries around a Williams %R oscillator.
• The bands define adaptive overbought and oversold areas.
• Inputs control the oscillator period, band deviation, smoothing, and horizontal shift.
• The description provides no signal rules or performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.