This article has been translated from English to Gen Z Slang.
The Williams %R (%R) is like that one friend who keeps track of the tea ☕. It checks how the current price is vibing compared to the top-notch high price over a glow-up period, usually like, 14 days or whatev. 😎
Williams %R, aka the Williams Percent Range, is part of the cool kids’ group known as the momentum oscillator. It’s perfect for spilling the beans on when something’s been shopped too much (overbought) or is a steal (oversold). 💸
Our guy behind the Williams %R indicator is Larry Williams, the OG author, and stock and commodity whiz.
Not only did Larry hook us up with Williams %R, but he also dropped other bangers like the Ultimate Oscillator, COT indices, and even market trends glow-ups. Talk about multi-tasking! 🔥
His biggest flex though? Probably his daughter, Michelle Williams, the icon who took home two Golden Globes for bossing Marilyn Monroe in the drama My Week with Marilyn. 🎬🌟
Williams %R is like the Stochastic oscillator’s cool cousin and serves the same tea. 🍵
The cheat code to life for traders? Williams %R! It drops hints on when to start the show or call it a night based on “overshopped” and “under the radar” vibes and also shows mood swings between bull and bear moves. 📉📈
Using Williams %R Like a Pro
Williams %R basically lets you know if you secured the bag or not by spilling the tea on the current price compared to the peak hype over the last 14-or-so hangout sessions.
A bounded oscillator is an indicator with trust issues, refusing to go beyond its limits. With Williams %R, you're either at top or bottom game. No capping above 0 or below -100.
Williams %R tiptoes around 0 to -100, with stealth mode on at -50.
- The closer it gets to -100, the more the price seems to be dining at the low table recently.
- The closer it’s to 0, the higher the price is riding the wave. 🤙
- When Williams %R flips over -50, it shouts "bulls are in the house!" 🐂
- When Williams %R sinks under -50, the bears might be throwing a party. 🐻
The lazy go-to for Williams %R is -20 for the “boujee” vibes and -80 for the “broke” vibes.
Here's the DL on what each vibe really means:
- A vibe above -20 is full of that boujee energy.
- Dropping below -80? It’s digging for that broke energy.
But like, let's finesse this:
- If it’s flexing above -20, the price is skiing the high slopes. ⛷️
- Below -80? It's in the low zones. 🎢
Riding the wave up? Wait for Williams %R to slip below -80. Once good vibes return, and it hops back above -80, the boss uptrend might be back. 💹✨
In the dumps? Watch for Williams %R to pop above -20. If it tumbles back down, then the downtrend might have more juice. 📉
Spot weak vibes.
Within a strong flex, if Williams %R hits -20 or higher, but then misses its glow-up above -20, the price vibe might be cooling off. 🕶️🥶
On a gloomy trend, if Williams %R dips to -80 or lower, but can't rise back above, that downward shuffle could be losing steam. 🌪️
Williams %R: The Weak Spots
Things to keep on your radar when eyeballing Williams %R moves:
Buy the Combo, Not Always a Trend Reversal
Just ‘cause Williams %R says it’s "Overbought" or "Oversold," don't bank your breakup money on a reversal. 🚫
An “Overbought” tag means the vibe is near the top, maybe even grinding fresh highs – flexing on everyone! 🤑
So, even "Overbought" can be "Trending Upwards." Mind blown, right? 🤯
An “Oversold” tag gives the low-down, like chilling near previous lows – trend stays STRONG downwards. 🧊
So remember, Williams %R can linger in "Oversold" if the downfall is on fleek.
How long can it chill like that? Longer than your cash stack does, trust. 🧊💀
Don't Ghost False Signals
The Williams %R can get moody with fake flares. Be cautious, fam. 😬💔
Like, 14-period Williams %R says “Oversold” and rises, but price just chugs along or even noses down.
Because this baby only knows the recent vibe, like the last 14 party sessions or so. 😪
As time ticks, the current price has to keep up with the high-low pop star life in the range, even if it’s standing still. 💃🕺
Crunching the Williams %R Numbers
Williams' %R formula is simpler than miracle math:
%R = (Highest High - Close)/(Highest High - Lowest Low) * -100
Where:
Lowest Low = chillest price from the flashback look Highest High = peak price from the lookback party %R is negative-jiggified to fix that flip and decimal jam. 🔄
With prices from the last 14 periods in mind, here’s the tea:
- Make note of the highs and lows for each cycle in 14 vibes.
- On the 14th vibe, jot down the current, highest, and lowest scores. 📋
- Come the 15th period, focus on the now, top, and bottom feels but only for the last 14 beats. 🎶
- Do the jig and get a new Williams %R readout.
- Each cycle’s end means time to recalculate the Williams %R, keeping it real with only the freshest 14 period deets.