The **Williams Percent Range**, also called **Williams %R**, is a momentum __indicator__ that shows you * where the last closing price is relative to the highest and lowest prices * of a given time period.

As an oscillator, Williams %R tells you when a currency pair might be “**overbought**” or “**oversold**.”

Think of it as a less popular and more sensitive version of Stochastic.

As a momentum indicator, it also gives RSI-like vibes in that it measures the strength of a current trend.

But while RSI uses its mid-point figure (50) to determine trend strength, traders use %R’s extreme levels (**-20** and **-80**) for cues.

Did you know that Stochastic and %R use the same formula to pinpoint the relative location of a currency pair?

The only difference is that Stochastic shows you a relative location by using the *lowest price* in a time range while %R uses the *highest price* to pinpoint the closing price’s position.

In fact, if you invert the %R line, it will have the EXACT SAME LINE as Stochastic’s %K line!

This is why Williams %R uses the **0 to -100** scale while Stochastic is scaled from **0 to 100.**

A reading **above -20 **is **OVERBOUGHT**.

A reading** below -80 **is **OVERSOLD.**

An overbought or oversold reading does NOT guarantee that the price will reverse.

All “overbought” means the price is **near the highs of its recent range.**

The same goes for oversold. All “oversold” means the **price is near the lows of its recent range.**

Williams %R’s sensitivity to volatile prices comes in handy when you want to know if prices are maintaining their bullish or bearish momentum.

In EUR/USD’s daily chart below, you can see that the pair tried to extend its uptrend but failed to reach a new price and %R highs.

This means that prices aren’t hitting the high end of their range as quickly as it did before and that the bullish momentum might be running out of steam.

In this case, the __pair__ ended up dropping 200 pips in a week!

Almost immediately after that, the price gained enough bullish momentum to push __%R__ above its oversold levels.

But although EUR/USD is still poppin’ up red candlesticks, they’re not enough to drag Williams %R back to its previous lows.

Another loss of momentum?

__Williams %R__ sure thought so!

Turned out, the bulls DID take over and pushed __ EUR/USD__ around 775 pips higher in less than 30 days.

Now that’s good oscillating right there. No wonder superfans call Williams %R as “The Ultimate Oscillator!”

Lesson 6: What is a Japanese Candlestick? Lesson 7 :Japanese Candlestick Anatomy Lesson 8:Basic Japanese Candlestick Patterns Lesson 9: Single Candlestick Patterns Lesson 10: Dual Candlestick Patterns Lesson 11: Triple Candlestick Patterns Lesson 12:Japanese Candlestick Cheat Sheet Lesson 13: Candlesticks with Support and Resistance Lesson 14: Common Mistakes That New Traders Make With Japanese Candlesticks Lesson 15: Summary: Japanese Candlesticks

Lesson 16 : Fibonacci Trading Lesson 17: How to Use Fibonacci Retracements Lesson 18: Fibonacci Retracements are NOT Foolproof Lesson 19: How to Use Fibonacci Retracement with Support and Resistance Lesson 20: How to Use Fibonacci Retracement with Trend Lines Lesson 21: How to Use Fibonacci Retracement with Japanese Candlesticks Lesson 22: How to Use Fibonacci Extensions to Know When to Take Profit Lesson 23: How to Use Fibonacci to Place Your Stop so You Lose Less Money Lesson 24: Summary: Fibonacci Trading

Lesson 25: What Are Moving Averages? Lesson 26: Simple Moving Average (SMA) Explained Lesson 27: Exponential Moving Average (EMA) Explained Lesson 28: Simple vs. Exponential Moving Averages Lesson 29: How to Use Moving Averages to Find the Trend Lesson 30: How to Use Moving Average Crossovers to Enter Trades Lesson 31: How to Use Moving Averages as Dynamic Support and Resistance Levels Lesson 32: How to Use Moving Average Envelopes Lesson 33: How to Analyze Trends With Moving Average Ribbons Lesson 34: How to Trend Trade with Guppy Multiple Moving Average (GMMA) Lesson 35: Summary: Using Moving Averages

Lesson 36: How to Use Bollinger Bands Lesson 38: How to Use the MACD Indicator Lesson 37: How to Use Keltner Channels Lesson 39: How to Use Parabolic SAR Lesson 40: How to Use the Stochastic Indicator Lesson 41: How to Use RSI (Relative Strength Index) Lesson 42: How to Use Williams %R (Williams Percent Range) Lesson 43: How to Use ADX (Average Directional Index) Lesson 44: Ichimoku Kinko Hyo Lesson 45: Trading with Multiple Chart Indicators Lesson 46: What is the Best Technical Indicator in Forex? Lesson 47: Summary: Popular Chart Indicators