Let's talk about the famous indicator WR, known by its full name, Williams Percent Range! This small but powerful technical indicator helps us decipher whether a market is in overbought or oversold conditions. Believe it or not, this tool was developed by the expert Leslie Williams and has the ability to measure the strength of momentum in financial markets.

# # The magic behind the calculation

To calculate the WR, we simply observe the difference between the current price and the highest and lowest prices over a predefined period, usually about 14 periods. The indicator values range from -100 to 0. Yes, I know, it might seem a bit technical, but here’s the formula for the curious:

\[ WR = \frac{{H_n - C}}{{H_n - L_n}} \times -100 \]

Where:
- **C** is the current price,
- **H_n** is the highest point in the n periods,
- **L_n** is the lowest point in those same periods.

( A glance at the interpretation

Now, what do these values mean? If you see numbers close to -100, that suggests an oversold condition, indicating that the market is in a strong bearish state. Conversely, if you approach 0, that could tell us we are in overbought territory, with a strong bullish momentum. To simplify:
- Between -20 and 0, the market is considered overbought.
- Between -80 and -100, the market tends to be oversold.

) How to apply it in trading

So, how can you use this in your trading strategies? If the indicator drops below -80, you might be looking at a golden buying opportunity when the market begins to recover its positive momentum. On the other hand, if levels rise above -20, it might be time to consider selling or pulling back, especially if you see signs of a bearish trend.

The WR is a true gem for volatile markets, as it helps us detect those moments when the market has become crazy with buying or selling strength. Just remember to act prudently and, as always, do your homework before making decisions based on these indicators. 🌟

So, what do you think of this indicator? Have you ever used it? Share your experiences with me!