Volatility-Adjusted Williams %R with Optional Smoothing

Summary

This note describes a Williams %R indicator adjusted for simple volatility. It also adds optional low-lag smoothing to reduce the indicator’s rapid fluctuations. The smoothing can be disabled by setting its period to one or less.

The indicator shifts Williams %R upward by 50 so it can be displayed as a histogram without two additional buffers. The document compares three charted versions: smoothed volatility-adjusted Williams %R, its unsmoothed counterpart, and regular Williams %R, and asks readers to judge which would best support a trading decision. This is a visual comparison rather than a tested trading rule: it gives no entry or exit criteria, performance results, or evidence that smoothing improves returns. The adjustment and smoothing methods are named, but their formulas and parameter guidance are not provided.

Key ideas

• The indicator adjusts Williams %R using simple volatility.
• Optional low-lag smoothing is intended to reduce Williams %R’s rapid fluctuations.
• A smoothing period of one or less turns smoothing off.
• The upward shift of 50 changes display placement for a histogram and is not presented as a trading signal.
• The document compares three variants visually but gives no performance evidence or explicit trading rules.

Tags

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