Williams Percent Range with Trendlines and Breakouts

The Williams Percent Range with Trendlines and Breakouts indicator provides a classic Williams %R oscillator integrated with automated trendline detection and breakout alerts to assist in identifying market momentum and potential reversals.

Usage

This indicator can be used to identify overbought and oversold conditions while simultaneously tracking momentum shifts through internal trendlines. Traders can observe the smoothed Williams %R line relative to the -20 (overbought) and -80 (oversold) levels.

The tool automatically draws trendlines connecting pivot highs and pivot lows within the oscillator window. A breakout occurs when the smoothed %R crosses these trendlines, signaled by a "Br" label on the chart.

• Bullish Scenario: Look for a breakout above a trendline connecting pivot highs while the oscillator is emerging from the oversold zone.
• Bearish Scenario: Look for a breakout below a trendline connecting pivot lows while the oscillator is descending from the overbought zone.

Details

The indicator calculates the Williams %R based on a user-defined length and applies a Simple Moving Average (SMA) for smoothing to filter out market noise. The pivot detection mechanism identifies local peaks and troughs within the oscillator's movement to anchor trendlines.

Breakout logic includes a "W%R Difference" buffer, which requires the oscillator to exceed the trendline by a specific margin before a breakout is confirmed, helping to reduce false signals in choppy markets.

Settings

• Length: The lookback period used to calculate the Williams %R.
• Smoothing Length: The period for the SMA applied to the raw Williams %R values.
• Source: The price input used for calculations (typically Close).
• W%R Difference: The minimum distance the oscillator must travel beyond a trendline to trigger a breakout label.
• Line Width: Adjusts the thickness of the trendlines.
• Pivot Low/High Color: Customizes the colors for the respective trendlines and labels.
• Label Size: Controls the size of the breakout "Br" labels.
• Overbought/Oversold Area Color: Customizes the background fill for the upper and lower threshold zones.

FAQ

How do I use the breakout labels?

The "Br" labels appear when the smoothed Williams %R line breaks through a pivot-based trendline, suggesting a potential shift in momentum.

Can I adjust the sensitivity of the trendlines?

Yes, by changing the "Length" and "Smoothing Length" settings, you can control how many pivots are detected and how reactive the oscillator is to price changes.

How do I access Williams Percent Range with Trendlines and Breakouts?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.