Williams %R is the Stochastic Oscillator flipped vertically and shifted onto a -100 to 0 scale. 0 means close pinned to the recent high; -100 means pinned to the low.
Formula
highest_high = max(high, period)
lowest_low = min(low, period)
%R = -100 * (highest_high - close) / (highest_high - lowest_low)Params
period- window for the high-low range. Default 14.
Output
Single column named after your indicator (e.g. willr).
Common thresholds
| Range | Meaning |
|---|---|
| > -20 | Overbought |
| < -80 | Oversold |
Usage
Same patterns as Stochastic. Most traders pick one or the other; the information is identical, only the scale differs.
Pitfalls
Same "embedded in trend" risk as Stochastic - strong trends can pin %R above -20 or below -80 for many bars. A fade rule alone will lose money against a real trend.