Ch 6 · Indicator
Momentum Leading

Williams %R

Same idea as Stochastic %K but inverted: scale runs from 0 (top) to −100 (bottom). Above −20 = overbought, below −80 = oversold.

Formula

%R = −100 × (High₁₄ − C) / (High₁₄ − Low₁₄)

What it's for

Overbought/oversold reversals, especially when combined with a trend filter (e.g., only take Williams %R longs when MACD is bullish).

When it fails

Same overbought-persistence issue as other momentum oscillators. The negative scale trips up new users.

On the chart

Nifty 50 daily bars with Williams %R pre-loaded:

Where it's used on this site

1 strategy uses Williams %R: