Williams R Indicator

Williams R Indicator

Track the best overbought/oversold signals with the Williams R indicator in MT4. An automatic technical tool to spot precise buy/sell setups in forex & stocks markets.

The Williams R indicator is an MT4 momentum indicator that discovers accurate overbought and oversold market conditions. Assessing the correct market momentum is a must for every trend-following trader. It helps you assess the bullish/bearish sentiment behind the price movements and predict the upcoming trend.

The indicator closely monitors the changes in momentums in all market conditions, helping you make the best buy/sell decisions. While testing the indicator, we’ve found it an ideal match for forex and stocks day/intraday trading. This guide explains how to use the Williams R signals for identifying potential trading opportunities in MT4.

How to trade using the Williams R MT4 indicator

Williams R anticipates valid price swing levels by using its overbought/oversold signal. The indicator value rises above -20 indicates an overbought market. When the value drops below -80, we consider the market as oversold. We’ll match the Williams R momentum signals with the current price action to identify potential buy/sell setups. For instance, price starts moving downwards after plotting a lower high in an overbought market is a perfect opportunity to go short.

According to the above chart, EURUSD was initially in an uptrend. The price was also respecting the current trendline support. At a point, the price returned near the trendline and plotted a bullish candle right above the support line. During this period, the indicator was below -80, signaling an oversold market. Once the value rises above -80, we can consider the correction period is over, and the price is ready to rejoin the overall bullish trend.

Conclusion
The Williams R deeply examines potential market highs and lows, helping you spot valid price swing levels. Besides shorter timeframes, it also works on daily, weekly, and monthly charts so that traders can project long-term price targets. Apart from beginners, experts also find it an excellent indicator to filter profitable trading opportunities in MT4.