Indicators · Beginner

Williams %R Explained

A 1-minute lesson from the MarketPro academy, one of 22 in trading indicators.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Williams %R is a momentum oscillator similar in concept to the stochastic oscillator, measuring where the current close sits relative to the highest high and lowest low over a set lookback period, plotted on a scale from 0 to -100. Readings closer to 0 indicate the close is near the top of its recent range, while readings closer to -100 indicate the close is near the bottom.

Reading The Indicator

Readings closer to 0 indicate the close is near the top of its recent range, while readings closer to -100 indicate the close is near the bottom. Commonly cited thresholds label readings above -20 as overbought and below -80 as oversold, though these thresholds are conventions rather than fixed rules.

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Williams %R tends to move quickly, which makes it sensitive to short-term price swings but also prone to frequent, sometimes premature, overbought/oversold readings
As with similar oscillators, a strong sustained trend can keep Williams %R pinned near an extreme for a long stretch without an accompanying reversal
It is often used alongside a trend filter so overbought/oversold readings are only acted on in the direction that agrees with the broader trend

Because Williams %R and stochastic are built from similar underlying logic, many traders pick one or the other rather than using both simultaneously, since they tend to produce similar signals at similar times. No single oscillator reading should be treated as a reliable standalone trade trigger.

Lesson 16 of 22 in Trading indicators

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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Not investment advice. Past performance is not indicative of future results.