Definition
Williams %R is similar to the Stochastic Oscillator but inverted, ranging from -100 to 0. Readings from -20 to 0 indicate overbought conditions; -80 to -100 indicate oversold. It was developed by Larry Williams for identifying reversals.
Formula
%R = (Highest High - Close) / (Highest High - Lowest Low) × -100
Example
If 14-day high is $55, low is $45, close is $52: %R = (55-52)/(55-45) × -100 = -30%. The stock is in the upper 30% of its range (mildly overbought).
FAQ
What is Williams %R?
A momentum indicator showing where price closed relative to the high-low range.
How do you calculate Williams %R?
A common formula for Williams %R is: %R = (Highest High - Close) / (Highest High - Lowest Low) × -100
Why is Williams %R important?
Williams %R helps investors evaluate technical analysis and make more informed decisions.