What is Williams %R?
A momentum indicator measuring the level of the close relative to the high-low range over a period, similar to Stochastic but inverted.
Think of it like this
Like a thermometer showing where today's temperature falls between the month's hottest and coldest days, but upside down.
Formula
%R = (Highest High - Close) ÷ (Highest High - Lowest Low) × -100- Highest High: Highest price over lookback period (typically 14 days)
- Lowest Low: Lowest price over lookback period
- Close: Current closing price
Why it matters
- Identifies overbought/oversold conditions
- Ranges from 0 to -100 (inverted scale)
- More sensitive than RSI
- Good for timing entries and exits
What's a good value?
0 to -20
Overbought
Price near recent highs, may reverse down
-20 to -80
Neutral
Normal trading range
-80 to -100
Oversold
Price near recent lows, may reverse up
Crossing -50
Trend Change
Momentum shifting
Real-world example
Williams %R at -95 indicates the stock is extremely oversold and may be due for a bounce.
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