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As soon as I saw the name, I thought of the Bill Williams indicator in the MT4 software.
But in fact, the two are not the same William, just like everyone has more than a dozen Michaels in their circle of friends, so they can't tell the difference.
Bill Williams indicator is a series of indicators developed by the famous trader Bill Williams, including the alligator line indicator, the fractal indicator and so on. The Williams indicator is an oscillating indicator, invented by Larry Williams, the author of "Short-term Trading Secrets".
Like the KDJ indicator and RSI indicator, the William indicator also judges the market entry opportunity by judging the range of the price and measuring the overbought and oversold phenomenon of the market.
It is very popular in both the stock market and the foreign exchange market. Below, Hui Classroom will share with you the practical use of this indicator.
A brief introduction to William's indicator
The English name of the Williams indicator is Williams's Percent Range, and the full Chinese name is Williams's Percent Range or Williams%R. The value range is 0-100, but it is represented as -100-0 in the MT4 K line chart.
This indicator also comes with MT4, so you don’t need to download and install it. Directly in MT4, insert the technical indicator - shock indicator - find the Williams's Percent Range indicator, the default time period is 14.
The Williams indicator is calculated from the highest, lowest and closing prices over a period of time in the past. The responses are shown in the graph as follows:
The only curve in the indicator is called the WR curve, the -80 line (that is, the 20 line in other indicators) is the oversold line, and the -20 line (that is, the 80 line in other indicators) is the overbought line. The -50 line is the middle line, the trading balance line. This indicator is more suitable for short-term trading, and the time frame selection is more flexible, you can choose M3, H1, H4, D1. Combine different trading varieties and your own trading habits to test the accuracy.
The indicators that involve specific numerical measurement seem to be relatively simple, at least no need to identify the form. So how does this indicator work? Let's see.
how to apply
The 20-line and 80-line can be used as a key reference for judging the opportunity to enter the market, and the center line can be used to judge the ups and downs of the market trend.
When the WR curve crosses the center line from top to bottom, it means that the exchange rate turns from strong to weak, and the subsequent price may fall; when it crosses the center line from bottom to top, it means that the exchange rate turns from weak to strong, and the subsequent price may rise.
When the WR curve is in the range of -100 to -80, it means that the downward trend of the price has come to an end, the market has entered the oversold area, and the price is about to reverse at the bottom.
When the WR curve is in the range of -20 to 0, it means that the upward trend of the price is about to end, the market has entered the overbought area, and the price is about to reverse at the top.
But if the WR curve enters the overbought/oversold region, it does not mean that the price will reverse immediately. As shown above. When the WR curve enters the overbought/oversold area, there will also be continuous fluctuations and shocks, and the price trend is also in a period of shocks.
After the shock period, when the WR curve crosses the -20 line, the top shock ends and turns down, which is a sell signal; when the WR curve crosses the -80 line, the bottom shock ends and turns to rise, which is a buy signal .
In general, this indicator is more advanced and can signal market reversals earlier, but there are also false signals. In fact, you can consider entering the market at the top of the oscillating area, but the characteristic of oscillating is that you don't know when it will end, and you need to break through for verification. When in use, it can be combined with other indicators such as RSI and KDJ indicators to test the accuracy.
Do you think RSI, KDJ, Williams indicators, which one is more accurate?
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