William's %R
William's %R
"William's %R" has proven very useful for anticipating market reversals. It is a momentum indicator, identifies overbought or oversold markets and it is plotted on an inverted 0 to 100 scale.
At first we have to calculate the Divisor. As you can see the formula below, we use HH and LL indicators to determine it.
After this, we can calculate the "William's %R", by using the following formulas:
From "Indicator Properties" you can change the settings for indicator:
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You can set line thickness, color and style for each component of this indicator (WPR, Over Bought and Over Sold). You can set the "Over Bought Property" and "Over Sold Property" option, too. In the example below the values for these fields are: 0 and 100. From "Length" you can change the number of points that are used in the moving average.
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