Oscillators
Williams' Percent Range (%R)
Like the Stochastic, but upside down: 0 means the close is at the recent high, −100 at the recent low.
The idea in plain words
It shows how close the price closed to the top of its recent range. Closing near the top again and again is a sign of strength; slipping away from it, of weakening.
How it is calculated
The distance from the highest high to the close, divided by the full range of the last 14 candles.
%R = −100 × (highest high − close) ÷ (highest high − lowest low) (default 14 candles)How to use it
- Above −20: near the top of the range (overbought zone); below −80: near the bottom (oversold zone).
- A move out of the extreme zone (for example back above −80) can confirm a turn.
Drawing conclusions
- In uptrends, dips to −80 that recover quickly can be buying chances.
Example
A stock closes at 98 with a 14-day high of 100 and low of 90: %R = −100 × (100 − 98) ÷ 10 = −20.
Prices in examples are illustrative.
Watch out for
- Very sensitive; expect many signals.
A little history
Larry Williams introduced %R in 1973.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.