GlossaryIntermediate
Williams %R
A momentum oscillator, similar to the Stochastic Oscillator, plotted on an inverted scale from -100 to 0.
Williams %R, developed by Larry Williams, measures a closing price's position within its recent high-low trading range, conceptually similar to the Stochastic Oscillator, but plotted on an inverted scale from -100 to 0 rather than 0 to 100.
A reading near 0 means price closed near the top of its recent range (comparable to an overbought stochastic reading), and a reading near -100 means it closed near the bottom (comparable to oversold). See Kaavon's dedicated Williams %R article for the full calculation and how it compares to the standard Stochastic Oscillator.
Examples
- A Williams %R reading near 0 means price closed very near the top of its recent trading range.
- Williams %R and the Stochastic Oscillator are mathematically closely related, differing mainly in their scale and orientation.