Williams %R Threshold Reversals Filtered by ATR Direction

Summary

This strategy uses Williams %R threshold crossings to reverse between long and short positions. A long signal occurs when the oscillator crosses above its lower threshold while ATR is rising; a short signal occurs when it crosses below its upper threshold while ATR is falling. Each new signal closes the opposing position and opens a position in the indicated direction. The script specifies no stop loss or profit target.

The page describes the approach as a possible short-term scalping tool, especially on currency pairs and charts at or below 30 minutes. It supplies the rules and code but no backtest results or measured evidence of effectiveness. The method combines an oscillator’s overbought or oversold readings with volatility direction, but ATR rising or falling does not by itself establish price trend direction. Frequent reversals, transaction costs, and sustained moves against a position may affect results; the document does not quantify these risks.

Key ideas

• A long position opens when Williams %R crosses above its lower trigger as ATR rises.
• A short position opens when Williams %R crosses below its upper trigger as ATR falls.
• Each signal closes the opposing position and reverses direction.
• The script does not define stop-loss or take-profit orders.
• The page suggests short timeframes and currency pairs but provides no performance results.

Tags

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