William Percent R Oil Technical Analysis & William Percent R Oil Trading Signals
Williams %R Technical Oil Technical Indicator Developed by Larry William
Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Crude Oil Technical Indicator is a momentum oscillator used to analyze overbought and oversold levels in the crude oil markets.
The William % Range oscillator is similar to the Stochastic Oscillator indicator, apart from that fact that the %R is drawn upside down on a negative scale that's from 0 to -100 & the indicator doesn't apply a smoothing factor.
Williams Percent R, Percent R Technical Crude Oil Indicator – Crude Oil Trading Indicators
The Williams %R indicator analyzes the association of the closing crude oil trading prices relative to the High & Low range over a selected number of n candles.
- The closer the closing crude crude oil price of a candle is to the highest high of the range selected the closer to zero the %R reading will be.
- The closer the closing crude crude oil price of a candle is to the lowest low of the range selected the closer to -100 the %R reading will be.
When doing technical analysis a oil trader should ignore the minus sign placed before the value, for examples -40, the – sign should be ignored, just remember the indictor values are placed in an upside down manner.
- At zero: If the closing crude crude oil price of the candle is equal to the highest high of the range the William % R reading will be 0.
- At -100: if the closing crude crude oil trading price of the candlestick is equal to the lowest low of the range the William % R reading will be -100.
William Percent R Technical Oil Trading Indicator
Oversold/Overbought Levels on Crude Oil Indicator
- Overbought- William %R values from 0 to -20 are considered overbought while
- Oversold- William %R values from -80 to -100 are considered oversold.
As for trading overbought/oversold levels it is best to wait for a oil to change direction before taking a signal in the opposite direction. For Example if a oil is oversold it is best to wait for the oil trend to reverse and start to head in an upward direction before buying the crude oil.
Oil Trend Reversal Oil Trading Signals
The William %R indicator used to predict a oil trend reversal oil signal when trading a crude oil. Williams %R indicator always predict a reversal using the following technique
Bearish Reversal Oil Trading Signal- William Percent Range indicator forms a peak and turns down a few days before the crude crude oil trading price oil trend peaks and turns down. The example shown below shows %R giving a reversal oil signal before crude crude oil trading price starts to head down and change to a down crude oil trend.
Bearish Reversal Oil Trading Signal after Oil Trading Uptrend
Bullish Reversal Oil Trading Signal- William Percent Range indicator forms a trough and turns up a few days before the crude crude oil trading price oil trend bottoms and turns up.
Bullish Reversal Oil Trading Signal after Oil Trading Downtrend
