Williams %R Candle Colors for Overbought and Oversold Conditions

Summary

This indicator colors price candles according to the Williams %R oscillator. Aqua marks readings in the overbought region, gold marks the oversold region, and two shades of blue distinguish readings above the midpoint from readings below it when neither extreme applies. The color scheme makes oscillator state visible directly on the price chart.

The document describes a display tool rather than a complete trading strategy. It gives no entry or exit rules, parameter settings for the overbought and oversold boundaries, performance evidence, or risk controls. Candle colors alone therefore do not establish whether a trade should be taken; users would need to define and evaluate their own rules for interpreting the signals.

Key ideas

• The indicator maps Williams %R readings to candle colors.
• Aqua and gold identify the overbought and oversold regions, respectively.
• Blue shades distinguish readings above or below the midpoint outside those regions.
• The document supplies no tested trading rules or performance results.

Tags

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