What is the Williams’ Percent Range indicator?
The Williams’ Percent Range (W%R) is a technical analysis indicator that is used to identify overbought and oversold conditions in the market. It is calculated by comparing the current closing price to the high/low range for a specific number of periods, typically 14. The W%R is similar to the Stochastic Oscillator, but it is inverted, so that values above 80 indicate oversold conditions and values below 20 indicate overbought conditions.
How is it used by traders?
Traders often use the W%R to identify potential buying and selling opportunities. For example, if the W%R is above 80, it may indicate that the market is oversold and that prices may be due for a bounce or rally. On the other hand, if the W%R is below 20, it may suggest that the market is overbought and that prices may be due for a pullback or correction. Additionally, traders can watch for a crossover of the W%R and its signal line, which is a moving average of the W%R. A bearish crossover, where the W%R crosses below the signal line, may indicate that it is a good time to buy, while a bullish crossover, where the W%R crosses above the signal line, may suggest that it is a good time to sell.
How can I add Williams’ Percent Range to a chart in MT4 or MT5?
To add the Williams’ Percent Range to a chart in MetaTrader 4 (MT4) or MetaTrader 5 (MT5), follow these steps:
- Open the chart for the currency pair, stock, or other instrument that you want to analyze.
- Click on the ”Insert” menu at the top of the chart and select ”Indicators” from the drop-down list.
- In the ”Indicators” window, scroll down until you find the ”Williams’ Percent Range” and then double-click on it to add it to the chart.
- The Williams’ Percent Range will appear on the chart as a separate window below the main price chart.
- You can customize the appearance of the Williams’ Percent Range by right-clicking on it and selecting ”Properties” from the context menu. This will open the ”Williams’ Percent Range” properties window, where you can change the color, line style, and other settings for the indicator.
- Once you have customized the Williams’ Percent Range to your liking, click ”OK” to apply the changes and close the properties window. The updated Williams’ Percent Range will be displayed on the chart.
