Web Trader MT5
Williams %R is a technical indicator that helps traders see whether an asset may be overbought or oversold. In simple terms, it compares the latest closing price with the highest and lowest prices over a chosen period, usually 14 days.
The indicator moves between 0 and -100. A reading above -20 often suggests the asset may be overbought, meaning the price is near the top of its recent range. A reading below -80 often suggests it may be oversold, meaning the price is near the bottom of its recent range.
Traders use Williams %R to look for possible entry and exit points. However, it should not be used alone, because strong trends can keep the indicator overbought or oversold for a long time.
Example:
If a stock trades between $40 and $50 over 14 days and closes near $49, Williams %R may move above -20. This suggests the stock is near the top of its recent range, so traders may watch for a possible pullback.
In short, Williams %R helps traders read short-term momentum.
