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Williams %R

In short

Momentum oscillator similar to stochastic — scaled from 0 to -100

Similar to stochastic but inverted. Scaled from 0 to -100. Readings near 0 mean the stock closed near its recent high (overbought). Near -100 means near its recent low (oversold).

Williams %R inverts the stochastic calculation. Range is 0 to -100. Values from 0 to -20 indicate overbought conditions; -80 to -100 indicate oversold. Fast-moving indicator — can give earlier signals than RSI or stochastic.

Formula

%R = (Highest High - Close) ÷ (Highest High - Lowest Low) × -100

Thresholds

-100 to -80
Oversold — potential bounce
-80 to -50
Neutral bearish
-50 to -20
Neutral bullish
-20 to 0
Overbought — potential pullback

Related concepts

  • Stochastic Oscillator — Stochastic measures where today's close is relative to the recent high-low range, on a 0–100 scale. Above 80 means the stock closed near its recent highs (overbought). Below 20 means near recent lows (oversold).
  • RSI (Relative Strength Index) — RSI scores a stock from 0–100. Above 70 means it's been rising so fast it might be due for a pullback (overbought). Below 30 means it's fallen a lot and could bounce (oversold).
  • MACD — MACD compares two moving averages to show momentum. When the fast line crosses above the slow line, it's a buy signal. Cross below = sell signal. Like two runners — when the faster one pulls ahead, momentum is shifting.