What is Williams %R?
Williams %R compares close to high-low range over N periods — scale −100 to 0.
Formula
Above -20 = overbought; Below -80 = oversold
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Williams %R shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
Williams %R on Nifty (24,300): on the 15-minute chart, combine with session VWAP and 9:15–10:00 liquidity — index williams %r signals misfire on expiry Tuesdays without volume confirmation.
Reliance Industries perspective
Williams %R on Reliance at ₹1,300: daily vs hourly settings diverge around results and ex-dividend dates; note corporate events in journal when williams %r readings spike.
Bank Nifty futures perspective
Williams %R on Bank Nifty futures (55,000): first-hour signals differ from post-14:30 behaviour; avoid standalone entries when banking names lead the move.
How to validate
- Forward-test Williams %R on paper or sim for two weeks after rule changes.
- Validate only on trades where Williams %R settings matched the written playbook.
- Split results by trending vs range weeks on Nifty before trusting the signal.
- Require higher-timeframe bias agreement if that is part of your rule.
How to track in TradeLyser
- Add Williams %R reading to trade entry notes (value + timeframe).
- Create tags: “Williams %R aligned” / “Williams %R ignored”.
- Monthly: filter trades by alignment tag and compare win rate and avg R.
- Screenshot chart context for mentor review on disputed trades.
Best practices
- Combine Williams %R with higher-timeframe bias — not as a lone trigger.
- Avoid curve-fitting settings on less than three months of tagged data.
- Refresh playbook screenshots when changing Williams %R parameters.
- Skip trading when Williams %R conflicts with written risk limits.
Common pitfalls
- Treating Williams %R as a guaranteed reversal signal.
- Optimising parameters on one bullish month only.
- Trading against higher-timeframe bias because Williams %R “said so”.
- Failing to log when you overrode Williams %R discretionally.
How to use this in TradeLyser
Log %R and timeframe; pair with range-day tag for fades.
Reference guide
| Context | Value | Reading |
|---|---|---|
| 0 to -20 | Overbought | Price near highs |
| -20 to -80 | Neutral | Price mid-range |
| -80 to -100 | Oversold | Price near lows |
Related terms
Overbought describes price or oscillator extended above typical range — potential pause, not guaranteed top.
Oversold is extended below typical range on price or oscillator.
Relative Strength Index compares average gains to average losses over a lookback (commonly 14). Readings above 70 and below 30 are traditional extreme zones — not automatic reversal signals.
The stochastic oscillator measures where the close sits within the recent high-low range. %K and %D lines flag stretched moves in range-bound markets.
FAQ
Williams %R vs stochastic?
Similar family — do not double-count same signal.
Period 14 default?
Tune per validated tag only.
Start journaling with
TradeLyser
Connect your broker, tag strategies, and review performance with AI-assisted insights.