Developed by Larry Williams, Williams %R is a momentum indicator used for measuring overbought and oversold levels. The scale ranges from 0 to -100 with readings from 0 to -20 considered overbought, and readings from -80 to -100 considered oversold. This indicator shows the relationship of the close relative to the high-low range over a set period of time. In the case of Tradeopolis.com we have used the 52 week high and low so as to give us an indication as compared with its 52 week price levels. Typically, Williams %R is calculated using the highs and lows over a 14 day period and can be used on intraday, daily, weekly or monthly data. The time frame and number of periods will likely vary according to desired sensitivity and the characteristics of the individual security.

The nearer the close is to the top of the range, the nearer to zero (higher) the indicator will be. The nearer the close is to the bottom of the range, the nearer to -100 (lower) the indicator will be. If the close equals the high of the high-low range, then the indicator will show 0 (the highest reading). If the close equals the low of the high-low range, then the result will be -100 (the lowest reading).