William% R indicator is a momentum indicator that moves between 0 and –100.
This indicator measures the overbought and oversold regions.
William % R indicator was developed by Larry Williams and compares the closing price of a stock over a particular period of time generally 14 periods.
Let us discuss more about this indicator:
What is William% R Indicator?
William % R indicator helps is a momentum indicator that helps in identifying overbought and oversold regions and also signals entry and exit points.
When William % R indicator is between 0 and – 20 then the price is considered to be in the overbought zone and when the indicator is between – 80 and – 100 then the price is considered to be in the oversold zone. An overbought or oversold reading doesn’t mean the price will reverse. Overbought simply means the price is near the highs of its recent range, and oversold means the price is in the lower end of its recent range.