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