William Percentage Range Indicator

As Forex traders, we often learn different things from mentors, teachers, and “experts”. Even though knowledge is shared continuously, many indicators are hardly ever mentioned.

It is almost impossible to find in-depth information about these indicators and what works best with them.

In this article, we will take a look at the William Percentage Range indicator. I know you have probably NEVER heard of this indicator.

This indicator can improve your trading, but it could also just confuse you to the point where you never want to see another chart in your life!

I’m here to make sure that you are a part of the first group of people who use these indicators to make their lives easier and their trading more profitable. So let’s get into it, shall we?

William % Range

Have you ever heard of or used the stochastic oscillator? Most probably, yes, for the majority of you. Now, the stochastic oscillator and the William Percentage Range are very similar regarding their appearance and what they represent.

How? You might be asking. Both indicators use similar calculations (depending on current data) and usually provide the same signals.

Values range from 0 to -100 on a scale. This indicator is placed beneath your charts to help align with the current price and the William % R bias.

Before I go into the different values’ meaning, I must tell you about the significant differences between the stochastic oscillator and the William Percentage Range indicator.

Differences between William Percentage Range and Stochastics

While the stochastic oscillator tells us if a currency pair is overbought or oversold, the information is delayed, meaning that this is more of a lagging indicator.It generally tends to move slower.

The William Percentage Range is quicker and picks up price fluctuations sooner than the stochastic would. Therefore it is more helpful during high volatile periods. Us as Forex traders THRIVE off of volatility, which is why this indicator would benefit most.

Because it picks up entries sooner, we can catch trends earlier. This means the William % R has extra benefit to trend traders.  

Meaning of the values

0 to -20 represents an overbought market, which means you are looking for sells (shorts) because there was excess demand (now supply should come in).

-80 to -100 shows an oversold market, which means you are looking for buys (longs) because there was excess supply (now demand should come in).

(Source – Topbrokers.com)

 

There is usually a -50 zone when you plot it on your chart. If not, you can add this value because this zone represents a possible reversal/switch from a bullish to bearish market and vice versa.

When price struggles to break past the -50 area, it is usually a sign that the trend shall continue (whether it was bullish or bearish).

To better understand when to enter and place exits, it is essential to add other indicators such as Moving Averages for confluence.

Please understand, nothing works unless you work! I mean that if you don’t backtest this indicator with your strategy, you won’t know how well it works and where best it is applied. So, backtest the indicator over different years, on different pairs, or BOTH!

 

Happy trading, fellow traders!

Wishing you all a profitable week. Be sure to check out more of the indicators we’ll be unpacking next!

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Emmanuel Maphosa

Emmanuel Maphosa

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