Williams %R: A Range-Based Overbought and Oversold Indicator
Summary
The document introduces the Williams Overbought/Oversold Index, commonly called Williams %R, as a technical indicator calculated from closing price and the recent high-low range. Its formula compares the close with the highest high over a lookback period, scales that difference by the range between the highest high and lowest low, and multiplies the result by negative one hundred. The listed inputs include the close, high, low, lookback length, and two thresholds.
The page provides only the indicator’s name, required data, and calculation outline. It refers to a separate document for interpretation but does not include threshold values, trading rules, empirical tests, or guidance on choosing the lookback period. As presented, it explains the calculation concept but does not establish how the indicator performs as a standalone strategy.
Key ideas
- Williams %R compares the closing price with the recent high-low range.
- The formula scales the distance from the lookback-period high by the full range and multiplies by negative one hundred.
- The listed inputs include price data, a lookback period, and two thresholds.
- The document does not provide threshold values, trading rules, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.