Smoothed Williams %R with EMA Crossovers and Reversal Signals
Summary
This indicator smooths Williams %R with a fast weighted moving average and a slower exponential moving average. Williams %R compares the close with the recent high-low range and oscillates between zero and negative one hundred, where readings nearer zero indicate relatively overbought conditions and readings nearer negative one hundred indicate relatively oversold conditions. Crosses between the two smoothed lines are presented as bullish or bearish momentum signals.
The code also defines reversal signals from changes in the faster line, with separate threshold conditions for bullish and bearish reversals; the shown strategy entries use those reversal conditions. Default lookback and smoothing lengths are provided, along with a BTC/USDT futures test interval, but no measured results. The description frames crossovers and reversals as possible indications rather than proof of trend change. The code’s crossover and alert display statements are commented out, so those features are described but not active in the excerpt; the strategy logic instead acts on reversal signals.
Key ideas
- Williams %R places the close within its recent high-low range on a scale from zero to negative one hundred.
- A weighted moving average and an exponential moving average smooth the oscillator at different speeds.
- Crosses between the smoothed lines are described as potential momentum or trend-change signals.
- Reversal conditions based on the faster line are used for the shown long and short entries.
- The document provides test settings but no performance evidence, and some described display and alert features are commented out.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.