Williams %R
%R 14d
What it is
Williams %R is a momentum oscillator that locates the close within the 14-day high-low range. It runs from 0 (top of the range) to -100 (bottom). It's the inverted cousin of the Stochastic.
How to read it
Above -20 = overbought (closing near highs, watch for a pullback). Below -80 = oversold (rebound possible). In between, read the dynamic: rising toward -20 is bullish, falling toward -80 is bearish.
Common reference points
- Overbought — watch pullback-20 to 0
- Bullish zone-50 to -20
- Bearish zone-80 to -50
- Oversold — rebound possible-100 to -80
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Like all bounded oscillators, %R can stay pinned at an extreme during a strong trend. An overbought stock can stay overbought for weeks. A heads-up, never a standalone decision.
Other measures — Technical
Educational content. Polaris is not a registered investment adviser and makes no recommendation.