Contents
What is the Williams R indicator?
Also known as Williams Percent Range, the Williams %R is a momentum indicator that oscillates between 0 and -100. It's used to show when an underlying instrument is overbought or oversold. An asset is said to be overbought when the indicator crosses over the -20 line while it's oversold when it crosses under the -80 line.
In this guide, I'll show you how to set up the Williams R indicator on IQ Option. Next, I'll show you how to use it to trade.
Setting up the Williams R indicator on IQ Option
After logging into your IQ Option account, set up your chart. Here, I'm using the EUR/USD Japanese candles chart.
Click on the indicators feature and select momentum indicators. Next select the Williams percent range.
- Click on the settings feature.
- Next, set the period to 14. The upper line should be adjusted to -80 while the lower line should be -20.
- Click on Apply to save these settings.
The Williams R indicator should appear at the bottom of your chart. The range between the -20 and -80 is purple while the indicator is a blue line.
Basic Williams R indicator strategy
Your objective should be identifying when the indicator crosses the overbought and oversold lines.
When the indicator crosses under the -20 line it's a signal that the bears are taking over and a downtrend is imminent. Open a sell trade. Using the 5-minute candles, you can open a trade that lasts 30 minutes on IQ Option.
When the indicator crosses over the -80, it's an indicator that the bulls are taking over. At this point enter a buy position.
What is the difference between RSI and Williams R?
Oscillators have it that they all look similar on charts. Most have a single line and move in a particular rank. The obvious difference, of course, is how the indicators are calculated. The RSI is calculated in quite a different way to the Williams R indicator. However, we will not compare the mathematical formulas, because it is pointless.
What is worth comparing are the ranges adopted. RSI takes values from 0 to 100, while Williams R moves in the range from -100 to 0. This causes that for both indicators it is different to determine when the market is overbought and when it is oversold.
- RSI is overbought in the reading range of 70 (or 80) to 100 and Williams R shows overbought in the range of -20 to 0.
- RSI is oversold in the reading range of 0 to 30 (20) and Williams R shows oversold in the range of -100 to -80.
As you've seen, the Williams %R indicator is one of the simplest to use on IQ Option.
Now that you know how to set it up, open an IQ Option practice account and try it out.
Good luck
2 replies to "Explore Williams R Indicator on IQ Option. + Bonus 2 Simple Entry Signals"
thanks for sharing the detailed article on registring on IQ. I have been looking for the method. You solved my problem.
I have tried to set my William % range to making the upper line -80 and the lower line -20 but it doesn’t stick it doesn’t save,it just goes back to the way it was.