Overview
Williams %R Overbought/Oversold is a momentum-based reversal strategy built around the classic Williams %R oscillator.
It is designed to look for potential turning points when price closes near the upper or lower end of its recent range. This makes it suitable for traders who prefer a clear reversal model based on overbought and oversold conditions.
Signal Logic
The strategy monitors the Williams %R oscillator for signs that the market has reached an overbought or oversold extreme.
A potential sell setup appears when CCI pushes into overbought territory and then starts turning back down.
A potential buy setup appears when CCI drops into oversold territory and then starts turning back up.
This creates a reversal-oriented model focused on exhaustion near recent range extremes rather than trend continuation. Sensitivity can be adjusted through the lookback period to make the strategy more reactive or more selective across different markets and timeframes.
Williams R
| Parameter | Description |
|---|---|
| Period | Defines how quickly Williams %R responds to recent price movement. Smaller = faster reaction, more signals. Larger = smoother behavior, fewer signals. |
Williams R upper
| Parameter | Description |
|---|---|
| Value | Defines how high Williams %R must rise to treat the market as overbought. Closer to 0 = more signals, earlier sell setups. Lower = fewer signals, more selective overbought detection. |
Williams R lower
| Parameter | Description |
|---|---|
| Value | Defines how low Williams %R must fall to treat the market as oversold. Closer to -100 = fewer signals, deeper oversold only. Higher = more signals, earlier buy setups. |
Common Features
Each strategy has its own signal logic, but installation, setup, and trade management are identical across the product line. Once you know how to use one, you know how to use the rest.
See also: