Williams %R Trading Systems: Thresholds, Crossovers, and Moving Average Filters
Summary
The article explains Williams Percent Range as a momentum oscillator scaled from zero to minus one hundred. It relates the close to the high-low range over a lookback period and gives the calculation, a worked-data example, and guidance for interpreting the -80, -50, and -20 levels. Readings near the range extremes are described as oversold or overbought, while crossing the midpoint indicates a shift in which half of the range price occupies.
It outlines three simple rule sets: flagging extreme readings, buying or selling when WPR crosses the midpoint, and combining WPR with a moving average filter. The final system is implemented as an MQL5 Expert Advisor that produces signals from these conditions. These are educational examples rather than validated strategies: the article supplies no performance results, and it recommends combining indicators where appropriate and testing or optimizing rules before live use. The moving-average strategy description in the supplied text is partially cut off, so its full conditions cannot be verified here.
Key ideas
- Williams %R measures the close’s position within a recent high-low range and ranges from zero to minus one hundred.
- The article treats readings below -80 and above -20 as oversold and overbought zones.
- A cross of the -50 midpoint is used to define directional buy and sell signals.
- A third example combines WPR with a moving average to filter signals.
- The proposed rules are instructional examples and are not accompanied by performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.