Overview of 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
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.
Trading with Williams %R on IQ Option
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.
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.
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