WMSR (Williams %R): calculation and reading

Williams %R looks at how far the close is from the highest price of the recent period; the idea is close to KD but the direction is opposite.

Updated:

Chart

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Uses the prices of TSMC (2330) over roughly the last 120 trading days only to show how this indicator is drawn; it is not a stock recommendation. Source: Taiwan Stock Exchange.

Calculation

WMSR = (highest high of the last N days − today’s close) ÷ (highest high of the last N days − lowest low of the last N days) × 100, with a default N = 9.

This site uses the 0-to-100 scale common in Taiwan by default: the larger the value, the closer the close is to the low of the last N days (weaker); the smaller the value, the closer it is to the high (stronger). The US-style Williams %R takes the same number with a negative sign, so it falls between −100 and 0 and the direction is exactly reversed; this site lets you switch between the two.

How to read it

Limits

Like KD, in a strong or weak trend the value can stay at the edge of the range for a long time. It does not include volume and does not predict the future.

Where the idea comes from

Williams %R was introduced by Larry Williams. This article explains it in our own words.

This article only explains the calculation and how to read a chart. It is not investment advice.

See it on this site

Sources

  • Larry Williams — 威廉指標的提出者

Citing and copyright

This article is original content of “Tenmizu FinTech”. You are welcome to cite it; please credit the source and link to this page. Concepts or data that come from others are credited under “Sources”; their copyright belongs to the original authors.

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