Williams %R

The Williams oscillator is based on a similar idea, taking account of the position of the price close in relation to the price range over a certain number of days. The concept for using it is the same as other oscillators, looking for divergences from the price action when the line is in the over extended areas. The 20 day Williams %R is shown below, and you can see it is more volatile than the stochastic above. This is to be expected, as the slow stochastic has three day smoothing by moving average applied to it.

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