madmacs - williams %r, page-3

re:sabre mettle williams %r The analysis of Williams' %R is very similar to that of the Stochastic Oscillator (see Stochastic Oscillator) except that %R is upside down and the Stochastic Oscillator has internal smoothing.
Readings in the range of 80 to 100% (remember to ignore the minus symbol) indicate that the market is oversold, while readings in the 0 to 20% range suggest that the market is overbought.
As with all overbought/oversold indicators, it is best to wait for the security's price to change direction before placing your trades. For example, if an overbought/oversold indicator (such as the Stochastic Oscillator or Williams' %R) is showing an overbought condition, it is wise to wait for the security's price to turn down before selling the security. (The MACD is a good indicator to monitor change in a security's price.) It is not unusual for overbought/oversold indicators to remain in an overbought/oversold condition for a long time period as the security's price continues to climb/fall. Selling simply because the security appears overbought may take you out of the security long before its price shows signs of deterioration.

An interesting phenomena of the %R indicator is its uncanny ability to anticipate a reversal in the underlying security's price. The indicator almost always forms a peak and turns down a few days before the security's price peaks and turns down. Likewise, %R usually creates a trough and turns up a few days before the security's price turns up.


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Hi Sabre Im jealous are you on MS8 pro intraday or such.
yes it has been trying to turn up, for a while, thanks.
needs vols (and depth support?) for a run..