Concept
Williams %R
Williams %R is a Momentum & Oscillators concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.
Top Williams %R indicators
3 total
What is Williams %R?
Williams %R is Larry Williams' momentum oscillator measuring where the latest close sits inside the recent high-low range. It is computed as (highest high - close) divided by (highest high - lowest low) over a lookback window, 14 periods by convention, multiplied by -100. The scale runs from 0 (closing at the very top of the range) down to -100 (closing at the very bottom), with readings above -20 conventionally labeled overbought and readings below -80 oversold.
Mechanically it is the raw %K of the stochastic oscillator flipped onto a negative axis: %R equals %K minus 100. The practical difference is presentation and smoothing: %R is typically plotted raw with no signal line, so it reacts sooner than a slow stochastic and whipsaws more.
How traders use it
- As an overbought/oversold gauge: extremes flag closes pinned to the edge of the range; in sideways markets these often precede fades, while in trends they can persist for many bars, so most workflows apply a trend filter before fading them.
- As a momentum-failure tell: in an uptrend, a rally that can no longer lift %R above -20 shows closes failing to reach the top of the range, the same weakening logic as a stochastic that stops reaching overbought.
- As a timing trigger inside a higher-timeframe trend filter: wait for %R to reach the oversold zone during an uptrend, then act on the hook back above -80 or a price trigger rather than the extreme reading alone.
Related concepts · Classic single-name oscillators
Concept family
Momentum & Oscillators
91 concepts mapped · 72 in the Library
Williams %R FAQ
Is Williams %R the same as the stochastic oscillator?
It carries the same information as the raw stochastic %K, mirrored: %R equals %K minus 100 and is plotted from 0 down to -100. The practical differences are that %R is conventionally unsmoothed and has no signal line, so it is twitchier than a fast stochastic. Signals translate directly: -20 and -80 in %R correspond to 80 and 20 in stochastic terms.
What counts as overbought and oversold on Williams %R?
Convention says readings above -20 are overbought and below -80 oversold, with some traders using -10 and -90 in strong trends. Treat them as statements about where price is closing within its recent range, not as reversal signals: in a persistent trend %R can hold the overbought zone for many bars while price keeps running.
Build Williams %R your way.
Quant writes, tests, and refines it with you — then it runs on LuxAlgo charting or ports to TradingView.