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The Williams %R indicator, an oscillator created by Larry Williams, attempts to identify markets that are overbought/oversold and due for a correction. When the oscillator reaches 0 or -100 -- its two extremities -- a signal is issued. Traders should wait five periods and for price to move 15 points (so from -100 to -85 or from 0 to -15) before entering. Traders can exit when the opposing extremity (0 or -100) is reached.
@ragedmaximus I would call those instance buying or selling climax. It is a great indication (in an up trend) that demand (buying Power) has been satisfied, this is late traders jumping in hoping that they have not missed the rally. same with down trend.
clubbone 1 month ago
Really informative
DjSens3 1 month ago
I have been watching wr for a few years and also noticed sometimes that when price is overbought for some reason stock price can quickly double sometimes 100% in a short amount of time for some reason in wr zone stock price can acellerate very quickly
why is beyond me this goes for overbought and oversold so stocks can go up faster and down faster in those zones . maybe it is just trend but i see it alot when scanning every day also using wr on weekly chart instead of daily can tell the future
ragedmaximus 1 month ago