Best operating scenarios for using the Williams% Indicator
Best operating scenarios for using the Williams% Indicator
With this post I will resume my deliveries on some basic trading strategies, this time I will continue to expand information on Williams% R Indicator, mainly because this technical tool is used to detect areas of accumulation, it is intuitive that the best operating scenarios to use this technical tool, are precisely when the price action is in an area either sideways accumulation or distribution.
In consideration of what was stated in the previous paragraph, and as the case may be, if the Williams% R Indicator is above -20 and is projected to 0, it is an excellent scenario to sell, while if the Williams% R Indicator is below -80, it will be a good scenario to buy.
Overbought signal
Which would be the most advisable if the Williams% R Indicator is above -20 and projects to 0, for example; in those cases, where a financial instrument is in a constant price rebound (bullish), and if it subsequently pauses in a sideways accumulation or distribution area, the moment the Williams% R Indicator is above -20 and projects to 0, it will be an overbought signal and a probable change of trend from bullish to bearish, therefore, it can be considered as the best scenario to sell.
To project an overbought scenario, using Williams% R Indicator as a signal indicator of the likely trend change, note in the left segment of the following image; ZIL price action on sell signal near $0.20 with Williams% R Indicator above -20.
Overselling signal
Now, in those cases where a financial instrument is in constant price depreciation (bearish), and if it subsequently pauses in a sideways or accumulation area, the moment the Williams% R Indicator is below - 80, it will be an oversold signal and a probable change of trend from bearish to bullish, therefore, it can be considered as the best scenario to enter into buying.
To project an oversold scenario, using Williams% R Indicator as a signal indicator of the likely trend change, note in the right segment of the image below; ZIL price action on a buy signal near $0.05 with Williams% R Indicator below - 80.
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image background: Source: daytradetheworld
Greetings friend @lupafilotaxia, as always sharing very interesting information for trading, it looks very striking this indicator, I must read more about it, to see how it behaves in my trading strategy, if I can improve it with the application of it, I will be attentive to your next publications.
Hello @chucho27
Correct the ideal is to read more about it not only about this indicator, but about how the rest of the oscillators work.
Best regards, be well.
Hello dear friend @lupafilotaxia, thank you for these great educational articles on trading indicators, certainly allows us to get to know tools that can be useful when it comes to
trade.
So long, have a great week.
Hi @amestyj
Yes, it is a very useful tool, I recommend you also to study how the rest of the oscillators work.
Best regards, be well.
@tipu curate
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Hi @lupalifotaxia
Happy new year 2022.
Williams% Indicator is an excellent tool for technical analysis.
Thanks for sharing this information, regards.
Hi @janettyanez
Very good tool as it gives us the facility to project the direction of the main trend, I recommend you also study how the rest of the oscillators work.
Best regards, be well.
Excelente operativa, gran ejecución del indicador y la explicación fue formidable. ¡Me siento elogiado por codearme con traders de alto calibre! Difsrute mucho tu publicación.
Hi @diego1306
Glad you liked it, thanks for visiting the blog.
Best regards, be well.
Excelente operativa, gran ejecución del indicador y la explicación fue formidable. ¡Me siento elogiado por codearme con traders de alto calibre! Difsrute mucho tu publicación.
Hi @diego1306
Glad you liked it, thanks for visiting the blog.
Best regards, be well.
bitcoin right now definitely oversold
Hello @stokfotos
I see it that way too, thanks for visiting the blog.
Best regards, be well.
Hello @stokfotos
I see it that way too, thanks for visiting the blog.
Best regards, be well.
Thanks for sharing your valuable post with us really you accumulated lot information in this. your single line giving and information like 100 lines. but you described easily.
Thanks for sharing your accumulated data with us stay connected and stay safe brother because covid is increasing.
We'll meet again
Hi @alfazmalek
Thanks for visiting the blog, glad you found this post useful.
Best regards, be well.