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This Williams Percent Range (W%R) Alert Indicator powerful momentum indicator overbought and oversold conditions so that traders can cast a sound judgment. The Williams Percent Range indicator works by the momentum of price changes for a specified period. This represents the distance that we currently closed from our highest high for this period. Overbought means that an asset price has increased too much in a very short period.
How to Use Williams Percent Range Alert Indicator?
This is generally taken as a sign to start thinking selling or locking in some of the gains. The Williams Percent Range (WPR) flags this by crossing above -20 which implies a case of overbought. This not only reduces the risk which helps you sleep better at night during rocky market times.
You must adjust your stops continuously according their ongoing analysis and changing sentiment in the market.
WPR is calculated using the relatively simple formula: WPR = (Highest High — Current Close) / Extensions dialog box ((Highest High — Lowest Low)) × -100 The result returns values in between 0 to -100.
Calculation and explanation of WPR values
A momentum indicator the Williams Percent Range (WPR) works with identifying overbought and oversold conditions This indicator values between 0 and -100 based on the current closing price in relation to high low range over a specific time period which is usually around 14 periods.
For example, the formula specifying how to compute WPR is this one:
\[ WPR = (Highest High — Current Close) / (Highest High — Lowest Low) x -100\]
There is another major benefit in this and it pertains to target entry and exit points. Traders use this indicator to better profit on price moves because of the sharp movements that it shows. Then by making educated decisions they can increase profits and ensure minimal risk exposure that is subject to precise timing.
BUY SELL Signal MT4
These are able to provide an edge in market conditions of all kinds making WPR one of the must have indicator both for beginners and professional traders using it within their trading strategies. This situation at the start of bull markets as buyers smell a bargain. On the contrary a level above -20 indicates overbought conditions.
Traders can keep their global market view and monitor when these levels cross alongside other indicators to confirm analysis. If the WPR is in an overbought area for this means that you should put a stop loss above recent price highs.
Williams Percent Range Strategy
you can safeguard your investment in case the market suddenly reverses. When the WPR is over extended and shows an oversold area putting a stop loss just below recent lows can close out quickly to prevent any massive losses while still offering some room for follow through.
This gives traders the ability to know when they need to be bullish, bearish or neutral with their positions based on market. Confirmation can be by monitoring price movements with regards to the WPR. it is recommended that WPR data to be paired with other indicators for increased accuracy in pinpointing target points.
