Williams %R is a momentum indicator measuring overbought and oversold levels. It was developed by Larry Williams and compares a stock's close to the high-low range over a certain period of time, usually 14 bars. The indicator is also classified as an oscillator since the values fluctuate between 0 and -100. Williams %R is helpful to determine overbought and oversold conditions as well as reversals in market trends.
Per special request I adapted the Williams %R indicator available in thinkorswim's thinkDesktop. The full "suite" consists of three studies:
- WilliamsPercentR_Colors: the indicator in the sub pane with colored clouds and an average too.
- WilliamsPercentR_Signals: for plotting arrow signals to indicate reversals.
- WilliamsPercentR_Alerts: for sound alerts and notifications in Message Center (see chart).