Trends/Momentum oscillators

Williams %R

Shows where the close sits in the last 14 bars' range, on a scale from 0 (top) to −100 (bottom).

Momentum oscillatorsBest on 3M, 6MAlso called %R

Illustration of the Williams %R shape. It is a sketch, not real price data.

What it shows

Larry Williams' %R is the stochastic oscillator turned upside down. %R = (highest high − close) ÷ (highest high − lowest low) × −100. A value of 0 means the close is at the high of the range, and −100 means it is at the low.

Readings above −20 and below −80 are the usual reference lines.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find the highest high and lowest low of 14 bars.
%R = (highest high − close) ÷ (highest high − lowest low) × −100.
Plot with lines at −20 and −80.
No smoothing.

Starting values: Length 14; Lines −20 / −80. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows %R.
Near the top: the close is near the range high.
Near the bottom: near the range low.

Status labels you may see

Label	What it means
Above −20	%R is above −20.
Between	%R between −20 and −80.
Below −80	%R is below −80.

What cancels it

Nothing cancels it.

What traders check next

How long %R stays at extremes.
Price trend.
Plain stochastic values.

Limits

Same as the stochastic oscillator, so redundant with it.
Noisy.
Sits at extremes in strong trends.

Try it in forecastviz

Open any ticker and choose Momentum oscillators → Williams %R in the left menu.
Switch between 3M, 6M to see how the picture changes.
Compare with Stochastic oscillator and Relative strength index on the same chart.

Open on a ticker

Questions

Is it different from stochastic?

It is the mirror image of the raw stochastic.

Why negative numbers?

It is how Williams defined the scale.