Williams %R — what it is and how to use it in trading
Definition
Williams %R is a momentum oscillator showing where the current close sits within its high-low range over the last period candles, on an inverted scale from -100 to 0. It is essentially a mirror image of the Stochastic Oscillator.
How it works in the builder
The williams_r operand takes a period parameter (default 14) and returns a number between -100 and 0. Values above -20 are usually read as overbought, below -80 as oversold — the same logic as the Stochastic, just inverted in sign with different level calibration.
What it looks like on the chart
Drawn as a separate panel with horizontal levels at -20 and -80 — the line oscillates between 0 and -100, a mirror image of the Stochastic panel.
Typical use
Typical condition: williams_r(14) < -80 to look for a long entry after a sell-off, or williams_r(14) crossed_above -80 — the moment it exits the oversold zone.
Common pitfalls
Like the Stochastic, in a strong trend Williams %R can hang near -20 or -80 for a long time without reversing — crossing the level alone is not a guaranteed signal. It is easy to mix up the inverted scale with RSI/Stochastic when carrying level values over between indicators.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.