Williams %R Indicator Complete Explanation + Differences from Stochastic 2026

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What is Williams %R?

Williams %R

Williams %R is a momentum oscillator developed by Larry Williams. It is very similar to Stochastic, but is unique in that it moves between 0 and -100.

Williams %R = (Highest price in N period - Current closing price) / (Highest price in N period - Lowest price in N period) × -100 
Default period: 14

section	meaning
0 to -20	Overbought (0 on the right)
-20 ~ -80	neutral
-80 to -100	Oversold

Caution: Unlike Stochastic, the top (0) is overbought and the bottom (-100) is oversold. Although they seem opposite, the essence is the same.

Williams %R vs Stochastic

Compare	Williams %R	Stochastic
range	0 to -100	0 to +100
Overbought	0 to -20	80 ~ 100
Oversold	-80 to -100	0 to 20
averaging	None (more sensitive)	Averaging by %D
signal frequency	More	Less

Williams %R is more sensitive. Suitable for scalping that requires fast signals.

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Actual signal

Signal 1: Oversold bounce (return from below -80 to above -80)

Conditions: 
- Williams %R falls below -80 
- Return above -80 (cross-up)

Meaning: Oversold breakout = easing selling pressure = long signal 
Entry: Cross-up bar closes 
Stop Loss: Below -100 level 
Target: -20 level (overbought)

Signal 2: Overbought breakout (from above -20 to below -20)

Williams %R goes above -20, then returns below -20 
→ short signal

Signal 3: Continuous stay in oversold area

If %R stays below -80 for a long time, 
→ In a strong downward trend → It is not an anti-war signal, but the trend continues. 
→ Do not blindly go long

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