In this article, we're going to evaluate the use of one of the most famous indicators in the trading landscape: the "Williams Percent Range," better known as “%R.”
Larry Williams developed Williams %R based on the Stochastic indicator. While the Stochastic indicator uses the difference between the closing price and the lowest lows of n periods, the difference between the closing price and the highest highs of n periods (where n=14 is considered the ideal value) is used to calculate the Williams %R. The %R then fluctuates on a scale from 0 to 100 (but in some cases, it is calculated on a negative scale from -100 to 0).
