Williams R Calculator
Calculate Williams Percent Range oscillator for momentum and overbought/oversold conditions. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer
Williams R Calculator
Calculator
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Formula: %R = (Highest High - Close) / (Highest High - Lowest Low) x -100
Worked example — Williams %R = -38.46 | Neutral Zone | Close is 61.5% above the period low
Formula
%R = (Highest High - Close) / (Highest High - Lowest Low) x -100
Where Highest High is the maximum high price over the lookback period (typically 14), Lowest Low is the minimum low price over the same period, and Close is the current closing price. Values range from 0 to -100, with -20 to 0 being overbought and -80 to -100 being oversold.
Worked Examples
Example 1: Williams %R Calculation
Problem:Over the last 14 periods, the highest high is 161 and the lowest low is 148. The current close is 156. Calculate Williams %R.
Solution:Williams %R = (Highest High - Close) / (Highest High - Lowest Low) x -100 %R = (161 - 156) / (161 - 148) x -100 %R = 5 / 13 x -100 %R = 0.3846 x -100 %R = -38.46 Interpretation: Close is 38.46% below the period high Zone: Middle range (between -20 and -80) No extreme signal present
Result:Williams %R = -38.46 | Neutral Zone | Close is 61.5% above the period low
Example 2: Overbought/Oversold Signal
Problem:Williams %R has moved from -85 (oversold) to -75, crossing above the -80 threshold. Current close is 150, 14-period high is 155, low is 143. Evaluate the signal.
Solution:Previous %R: -85 (oversold, below -80) Current %R: (155 - 150) / (155 - 143) x -100 = -41.67 Actual calculation: %R = 5/12 x -100 = -41.67 Signal: %R has exited oversold territory (crossed above -80) This is a bullish signal indicating selling pressure is diminishing Confirm with volume expansion and bullish candle pattern
Result:Bullish Exit Signal | %R moved from -85 to -41.67 | Exited oversold zone | Potential long entry
Frequently Asked Questions
What is Williams %R and how does it work?
Williams Percent Range (%R) is a momentum oscillator developed by Larry Williams that measures the level of the close price relative to the highest high over a specified lookback period. It oscillates between 0 and -100, where readings near 0 (between 0 and -20) indicate the market is overbought and the close is near the period high, while readings near -100 (between -80 and -100) indicate the market is oversold and the close is near the period low. The indicator is essentially the inverse of the Fast Stochastic Oscillator, with the same mathematical relationship but displayed on a negative scale. Williams %R is particularly useful for identifying potential reversal points and momentum shifts in trending and ranging markets.
How is Williams %R calculated step by step?
Williams %R is calculated using a simple formula that compares the current closing price to the range of prices over the lookback period. First, you determine the Highest High over the last N periods (typically 14). Then find the Lowest Low over the same N periods. The formula is Williams %R = (Highest High - Current Close) / (Highest High - Lowest Low) multiplied by -100. For example, if the 14-period highest high is 161, the lowest low is 148, and the current close is 156, then %R = (161 - 156) / (161 - 148) x -100 = (5 / 13) x -100 = -38.46. This reading indicates the close is about 38 percent below the period high, placing it in the neutral to slightly bullish zone.
What do overbought and oversold readings mean in Williams %R?
In Williams %R, overbought conditions occur when the indicator reads between 0 and -20, meaning the current close is within 20 percent of the period high. This does not automatically mean the price will fall, but rather that buying pressure has pushed the price to the upper end of its recent range. Oversold conditions occur when %R reads between -80 and -100, meaning the close is within 20 percent of the period low. Many traders make the mistake of immediately selling at overbought readings or buying at oversold readings. In strong trends, the indicator can remain in overbought or oversold territory for extended periods. The best signals come when %R exits these extreme zones, such as falling below -20 from overbought or rising above -80 from oversold.
How does Williams %R compare to the Stochastic Oscillator?
Williams %R and the Fast Stochastic %K are mathematically identical but displayed differently. The Stochastic %K formula is (Close - Lowest Low) / (Highest High - Lowest Low) x 100, which gives a value between 0 and 100. Williams %R is (Highest High - Close) / (Highest High - Lowest Low) x -100, giving values between 0 and -100. If you add 100 to Williams %R and flip the sign, you get the Stochastic %K value. The key difference is that the Stochastic Oscillator includes a smoothed signal line (%D) which provides crossover signals, while Williams %R is typically used as a standalone oscillator. The Stochastic also uses the slow version with additional smoothing, making it less responsive but smoother than raw Williams %R.
What are the best Williams %R trading strategies?
The most reliable Williams %R strategy involves trading divergences between price and the indicator. When price makes a new high but %R makes a lower high, it suggests weakening momentum and a potential bearish reversal. Conversely, when price makes a new low but %R makes a higher low, bullish momentum divergence is present. Another effective strategy is the overbought or oversold exit signal, where you wait for %R to move into extreme territory and then exit, entering a trade in the direction of the exit. Failure swings provide high-probability signals when %R fails to re-enter an extreme zone on a retest. Combining %R with trend-following indicators like moving averages helps filter signals to trade only in the direction of the dominant trend.
What lookback period should I use for Williams %R?
The standard and most commonly used lookback period for Williams %R is 14, which works well on daily charts for swing trading. Shorter periods like 7 or 10 make the indicator more sensitive and responsive, generating more frequent signals but with a higher percentage of false signals. These shorter periods are useful for active day traders who need quick signals. Longer periods like 21 or 28 smooth out the indicator and reduce noise, making signals more reliable but slower to develop. For intraday trading on 5-minute or 15-minute charts, a 14-period setting captures a meaningful amount of recent price action. Some traders use multiple Williams %R periods simultaneously, such as 7 and 21 periods, looking for agreement between the short-term and long-term readings before entering trades.
How do you identify divergence signals with Williams %R?
Divergence between Williams %R and price action is one of the most powerful signals the indicator can produce. Bullish divergence occurs when price makes a lower low while Williams %R simultaneously makes a higher low, indicating that selling momentum is weakening despite the lower price. This often precedes a reversal to the upside. Bearish divergence happens when price makes a higher high but Williams %R makes a lower high, suggesting buying momentum is fading even as price reaches new highs. For divergence signals to be reliable, both the price extreme and the %R extreme should be clear and distinct. The best divergence signals occur when %R is in or near an extreme zone. Divergences can take multiple bars to complete and should be confirmed by a price action trigger like a reversal candle pattern.
Can Williams %R be used in trending markets or only ranges?
Williams %R can be used in both trending and ranging markets, but the strategy must be adapted accordingly. In ranging markets, the traditional overbought and oversold signals work well because price oscillates between support and resistance. In trending markets, the indicator tends to stay in extreme territory for extended periods. In an uptrend, %R frequently reaches 0 to -20 (overbought) and then pulls back only to -40 or -50 before returning to overbought. Traders should buy these pullbacks from overbought territory rather than selling them. In downtrends, %R stays in oversold territory and rallies only to -50 or -60 before falling back. The key is to use %R in the direction of the larger trend, buying oversold readings in uptrends and selling overbought readings in downtrends.
What is a Williams %R failure swing and how do you trade it?
A failure swing is a specific pattern in Williams %R that provides a strong trading signal. A bullish failure swing occurs in three steps: first, %R falls below -80 into oversold territory; second, %R bounces back above -80; third, %R dips again but fails to reach -80, staying above the oversold zone; fourth, %R breaks above the previous bounce high, confirming the signal. A bearish failure swing is the mirror: %R rises above -20, falls back below -20, bounces again but fails to reach -20, and then breaks below the previous dip. The failure to re-enter the extreme zone indicates that the momentum has shifted and the previous extreme was likely the end of the move. These signals are particularly reliable because they show a clear change in the supply and demand dynamics.
How do you combine Williams %R with volume analysis?
Combining Williams %R with volume analysis significantly improves signal quality and reduces false signals. When Williams %R moves from oversold territory back above -80 with increasing volume, it confirms that genuine buying interest is driving the recovery, making the bullish signal more reliable. Conversely, a move from overbought back below -20 on high volume confirms selling pressure for a bearish signal. Volume divergence adds another layer, where price makes a new high with high %R readings but declining volume, suggesting the move lacks conviction. On Balance Volume (OBV) trending in the same direction as a %R signal provides additional confirmation. During extreme %R readings, check whether volume is expanding (supporting the extreme) or contracting (suggesting the extreme is unsustainable and a reversal is likely).
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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