Learn all about the Williams %R indicator, what it measures, and how you can use it to your advantage when Fixed Time Trading on the Olymp Trade platform.

The Williams %R is a momentum oscillator that measures overbought and oversold conditions in an asset. It is very similar to the Stochastic oscillator, with the main difference being that the Williams %R uses a Simple Moving Average (SMA) instead of an Exponential Moving Average (EMA).

How to Use the Williams %R Indicator in Your Fixed Time Trading on Olymp Trade Platform

When trading with the Williams %R indicator on the Olymp Trade platform, you should look for crossovers of the signal line and extremes in overbought/oversold conditions. TheWilliams %R can be used as a leading or lagging indicator, depending on the trader’s preference.   

If you want to use it as a leading indicator, you should look for situations where the signal line crosses above or below the 50 level – this indicates a possible change in direction. In overbought conditions, prices are thought to be unsustainable and ripe for a correction lower; in oversold conditions, prices may be due for a rebound.

 

Extremes can offer opportunities to enter positions in the opposite direction. For example, if the asset price is trading at levels not seen in recent weeks or months, this could be an indication that a reversal is about to occur. The key is to wait for confirmation before entering any trades.

1) Go to ‘Indicators’ -> ‘Oscillators’ -> ‘Williams Percent Range’

2) Enter your preferred settings (we recommend using the default settings) and click ‘Apply’

3) You will now see the Williams %R indicator added to your chart 

 

Best Practices

1) As with any other technical indicator, it is important to wait for confirmation before making any decisions. A crossover of signal line alone is not enough – look for candlestick patterns or other indicators before entering any trades.

2) Don’t forget to set stop-loss and take-profit levels! This will help you minimize losses and maximize profits.

3) Be sure to practice with a demo account before live trading. This will help you get comfortable with using theWilliams %R indicator and allow you to test out different strategies without risking any real capital.

 

Conclusion:

The Williams %R indicator is a momentum oscillator that is used to measure overbought and oversold conditions in an asset. It can be used as a leading or lagging indicator and offers opportunities to enter positions in the opposite direction when extremes are reached . Remember to always wait for confirmation before entering any trade , practice with a demo account first , and don't forget to set stop-loss and take-profit levels !