Stock Predictor trading strategy

Williams %R Early Entry

Williams %R shows where the close lies relative to the highest high of the last n days, on a scale from 0 to −100. Readings above −20 mean the stock is overbought; readings below −80 mean it is oversold.

Strategy group

Williams %R strategies

Based on

Williams %R

Typical parameters

n = 14 days, w = −80, v = −20

Early Entry acts as soon as the indicator enters a zone: it buys when %R falls below the lower limit w and sells when %R rises above the upper limit v.

Trading signals

• Buy when Williams %R falls below w.
• Sell when Williams %R rises above v.

Strategy rules

IF %R(n) > v
   THEN GO SHORT
ELSE IF %R(n) < w
   THEN GO LONG

Where %R(n) is the n-day Williams %R and v > w.

See also: example chart and how the Williams %R indicator is calculated.