Williams %R

Williams %R

In technical analysis, an indicator showing a security's closing price compared to its price over the last N days. Somewhat unusually, it rates on a scale of -100 to 0, with -100 representing a closing price equal to the low of the past N days and 0 representing a closing price equal to the high. Mathematically, it is represented as:

%R = ((closetoday - highN days) / (highN days - lowN days)) * 100

The Williams %R was created by Larry Williams, who concluded that a %R below -80 indicates a security is oversold; on the other hand, a %R above -20 indicates an overbought security. Most analyst use N = 10 or N = 14.