{"id":12272,"date":"2026-05-22T13:39:48","date_gmt":"2026-05-22T13:39:48","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/williams-r\/"},"modified":"2026-05-22T13:39:48","modified_gmt":"2026-05-22T13:39:48","slug":"williams-r","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/williams-r\/","title":{"rendered":"Williams %R"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/williams-r\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Williams %R<\/a> is a momentum oscillator developed by trader Larry Williams in the 1960s. It measures where the current close sits within a recent high-low range and signals when prices reach overbought or oversold extremes. The indicator ranges from 0 to &minus;100 and gives faster signals than <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/rsi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>RSI<\/a> or Stochastic &mdash; useful for active intraday and swing traders in Indian markets.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>Williams %R ranges from 0 (highest close) to &#x2212;100 (lowest close).<\/li>\n<li>Readings above &#x2212;20 are considered overbought; below &#x2212;80 are oversold.<\/li>\n<li>Default period is 14; can be shortened for faster intraday signals.<\/li>\n<li>Best used in ranging markets; less reliable in strong trends.<\/li>\n<li>Often combined with RSI or <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/moving-averages\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">moving averages<\/a> for confirmation.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"formula-and-meaning\">Formula and meaning<\/h2>\n<p>%R = (Highest High &minus; Current Close) &divide; (Highest High &minus; Lowest Low) &times; (&minus;100). The result is negative because of the formula, but the interpretation is straightforward: closer to 0 = close near the recent high (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bullish\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bullish<\/a> momentum), closer to &minus;100 = close near the recent low (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bearish\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bearish<\/a> momentum).<\/p>\n<h2 id=\"signals-you-can-trade\">Signals you can trade<\/h2>\n<ul>\n<li><strong>Overbought reversal:<\/strong> Williams %R rises above &#x2212;20 and then turns lower &#x2014; potential short signal in a range.<\/li>\n<li><strong>Oversold bounce:<\/strong> %R falls below &#x2212;80 and then rises &#x2014; potential long signal in a range.<\/li>\n<li><strong>Failure swings:<\/strong> Indicator fails to reach a new extreme along with price &#x2014; classic divergence signal.<\/li>\n<li><strong>Mid-line crosses:<\/strong> A move through &#x2212;50 confirms a shift in short-term momentum.<\/li>\n<\/ul>\n<h2 id=\"williams-r-vs-stochastic\">Williams %R vs Stochastic<\/h2>\n<p>Both indicators measure the close relative to a recent range. The arithmetic is essentially the same, but Williams %R is unsmoothed and uses an inverted scale (0 to &#x2212;100). Stochastic uses 0 to 100 and adds smoothing. Williams %R gives faster, but noisier, signals.<\/p>\n<h2 id=\"practical-example-on-a-stock\">Practical example on a stock<\/h2>\n<p>Take a stock <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>trading<\/a> in a range of &#8377;450&ndash;&#8377;490 over the last fortnight. Williams %R will swing between high and low values frequently. When %R hits &minus;85 and rises back above &minus;80, traders look for a long opportunity near support. Pair it with a candle reversal pattern for confirmation.<\/p>\n<h2 id=\"where-williams-r-fails\">Where Williams %R fails<\/h2>\n<p>In strong trends, %R can stay overbought (above &#x2212;20) for weeks. Selling each overbought signal during a bull run is a recipe for losses. Use ADX or moving averages to confirm whether the market is trending or ranging; trade Williams %R signals only when ADX is below 25.<\/p>\n<h2 id=\"tips-for-indian-intraday-traders\">Tips for Indian intraday traders<\/h2>\n<ul>\n<li>On 5-minute <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nifty\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Nifty<\/a> charts, %R with period 9&ndash;10 gives quicker signals.<\/li>\n<li>Pair with <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/vwap\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>VWAP<\/a> to confirm intraday trend direction.<\/li>\n<li>Use the &minus;50 mid-line to filter trades: only longs when %R &gt; &minus;50, only shorts when %R &lt; &minus;50.<\/li>\n<li>Avoid trading Williams %R signals during news-heavy minutes around 9:30 a.m. and 3:00 p.m.<\/li>\n<\/ul>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"is-williams-r-the-same-as-stochastic\">Is Williams %R the same as Stochastic?<\/h3>\n<p>Closely related, but Williams %R is unsmoothed and uses the &#x2212;100 to 0 scale. Stochastic is smoothed and goes 0 to 100.<\/p>\n<h3 id=\"can-i-use-williams-r-on-nifty-options\">Can I use Williams %R on Nifty options?<\/h3>\n<p>On <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/premium\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>premium<\/a> yes, but be careful &mdash; option premia decay over time, distorting range-based indicators.<\/p>\n<h3 id=\"what-period-works-best\">What period works best?<\/h3>\n<p>14 is the default. Intraday traders often use 9 to 10; positional traders may extend to 21.<\/p>\n<h3 id=\"should-i-trade-purely-on-r\">Should I trade purely on %R?<\/h3>\n<p>Most successful traders combine it with trend filters and price-action confirmation.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Williams %R is a momentum oscillator developed by trader Larry Williams in the 1960s. It measures where the current close sits within a recent high-low range and signals when prices reach overbought or oversold extremes. The indicator ranges from 0 to &#x2212;100 and gives faster signals than RSI or Stochastic &#x2014; useful for active intraday [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12272","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Ashutosh","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Williams %R is a momentum oscillator developed by trader Larry Williams in the 1960s. It measures where the current close sits within a recent high-low range and signals when prices reach overbought or oversold extremes. The indicator ranges from 0 to &#x2212;100 and gives faster signals than RSI or Stochastic &#x2014; useful for active intraday&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12272\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}