Williams’ Percent Range Indicator

Williams’ Percent Range Indicator

Track the best overbought/oversold signals with the Williams’ Percent Range indicator in MT5. An automated technical tool for determining the exact buy/sell settings in the forex and stock markets.

The Williams’ Percent Range indicator is an MT5 momentum indicator that accurately identifies overbought and oversold markets. Evaluating the right market momentum is a must for every trend following trader. This will help you assess the bullish/bearish sentiment behind the price movement and predict the upcoming trend.

The indicator closely monitors momentum changes in all market conditions, helping you make better buy/sell decisions. When testing the indicator, we found that it is ideal for day/intraday forex and stock trading.

This guide explains how to use Williams percentage range signals to identify potential trading opportunities in MT5.

How to trade using the Williams’ Percent Range MT5 indicator
The Williams percentage range anticipates actual price swing levels using an overbought/oversold signal. An indicator value above -20 indicates that the market is overbought. When the value falls below -80, we consider the market to be oversold. We will compare the impulse signals of the Williams percentage range with the current price action to identify potential buy/sell setups. For example, the price starts moving down after making a lower high in an overbought market, which is a great opportunity to go short.

According to the chart above, GBPUSD was initially in an uptrend. The price also followed the current trendline support. At some point, the price returned to the trend line and built a bullish candle just above the support line. During this period, the indicator was below -80, signaling that the market was oversold. As soon as the value rises above -80, we can consider that the correction period is over and the price is ready to join the general bullish trend.

Conclusion
The Williams Percentage Range scrutinizes potential market highs and lows, helping you determine the actual levels of price swing. In addition to shorter timeframes, it also works on daily, weekly and monthly charts to enable traders to predict long-term price targets. Besides beginners, experts also consider it a great indicator to filter out profitable trading opportunities in MT5.