MT5 Williams %R Indicator Download - Free | Forex Indicator Download - MetaTrader 5 Resources

The Williams %R Oscillator , available on MetaTrader 5, was developed by Larry Williams to measure overbought and oversold market conditions. This volatility indicator uses two dotted lines and operates on a scale from 0 to -100 to determine where price is relative to these areas.

Indicator specifications

Indicator overview

The main oscillator line (blue line) oscillates to reflect market conditions that are overbought and oversold . The dotted line indicates:

• Upper Dashed Line: Ranges from 0 to -20 , marking the overbought area
• Lower Dashed Line: Ranges from -80 to -100 , marking oversold areas

Price movements within these areas signal potential reversals in the opposite direction.

Performance in a bullish trend

Analyzing the 1 hour price chart of the AUD/NZD currency pair shows this indicator in a bullish trend.

The -80 to -100 range highlights the Oversold area. In this case, a trend reversal is expected in the opposite direction.

Performance during bearish trends

The 4-hour Bitcoin price chart (BTC) shows how this indicator performs under bearish trend conditions.

The 0 to -20 range highlights the overbought zone. In this case, the trend reversal in the opposite direction is expected.

Indicator Settings

• Chart Theme: Indicator theme;
• Period: The number of periods used to calculate the oscillating line is set to 14 .

Conclusion

The Williams %R indicator is a useful tool for identifying Overbought and Oversold zones.

The areas drawn by this trading tool represent potential trend reversal areas . Traders can use oscillations within the dotted line of the main oscillator as a signal for entering trades.