Williams %R Indicator for MetaTrader 4 - Free | Forex Indicator Download - MT4/MT5 Resource

The Williams %R indicator is a powerful oscillator tool developed by Larry Williams to measure overbought and oversold market conditions. This MetaTrader 4 oscillator operates from 0 to -100 , using two dashed lines to evaluate price relative to these conditions .

Indicator specifications

Indicator overview

The Williams %R indicator identifies two zones using the dotted lines in the oscillator section to evaluate overbought and oversold levels:

• Upper Line: Ranges between 0 to -20 , indicating overbought conditions
• Lower Line: Ranges between -80 to -100 , indicating oversold conditions

Price movements in these areas indicate underlying price reversals in opposite directions.

bullish trend indicator

According to the 1-hour price chart of Polkadot (DOT) , the oscillator lines are in the -80 to -100 range , marking oversold zones.

In this case, a reversal in trend can be expected. Once the oscillator exits the designated area, it can be considered a signal to enter Buy trades .

Bearish trend indicator

According to the 4-hour price chart of the EUR/USD currency pair , the oscillator lines are in the 0 to -20 range , marking overbought zones.

In such a scenario, there is a reversal trend that can be foreseen. Once the oscillator exits the designated area, it can be considered a signal to enter Sell trades .

Indicator Settings

• Chart Theme: Indicator theme;
• Period: Calculate the period number of the oscillating line to 14 .

Conclusion

The Williams %R indicator is specifically designed to identify overbought (overbought) and oversold (Oversold) zones. This trading tool not only highlights trend reversal zones, but also provides potential signals to enter trades based on line fluctuations within the Williams %R designated zones.