Williams %R
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Definition
Williams %R is a bounded momentum oscillator (0 to -100) showing where the close sits within the recent high-low range; it is essentially an inverted, unsmoothed stochastic %K.
How to read it
The scale runs 0 (top of range, strongest) to -100 (bottom, weakest). Readings from 0 to -20 are overbought; -80 to -100 are oversold. Because it is unsmoothed, %R is fast and reaches extremes readily. A move out of an extreme zone (e.g. crossing back above -80) is often used as the actual trigger rather than the extreme reading itself. Like other range oscillators it is best for short-term overextension.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
%R stays pinned at extremes throughout strong trends (like stochastic); fading -90 in a strong downtrend is a repeated loser - require a range regime or a reversal confirmation. Its lack of smoothing makes it the noisiest of the range oscillators; many pros add smoothing or use it only for confirmation. Williams %R, %K stochastic, and (inverted) RSI carry highly overlapping information; treat them as one 'range-position' family, not three independent votes.
Sources & provenance
Larry Williams 1973
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.