Williams %R
A momentum indicator that measures overbought and oversold levels, similar to a stochastic oscillator.
Usage
Use to identify entry and exit points in the market. Readings from 0 to -20 are considered overbought, while readings from -80 to -100 are considered oversold.
Background
Developed by Larry Williams, %R compares the closing price of a stock to the high-low range over a specific period, typically 14 days. It is used to determine when a stock might be overbought or oversold and to identify potential trend reversals. — StockCharts ChartSchool
Parameters
timeperiod(default: 14): Lookback period
Formula
\[
\%R = \frac{\text{Highest High} - \text{Close}}{\text{Highest High} - \text{Lowest Low}} \times -100
\]