How it is calculated
%R is -100 times the highest high minus the close, divided by the highest high minus the lowest low, over the length. That is the raw stochastic %K moved down by 100, with no smoothing. A range of zero gives 0. As TA-Lib WILLR, after Williams 1973.
Reference: TA-Lib WILLR (Williams 1973)
How to read it
Above -20 the close is near the top of its range, often called overbought; below -80 near the bottom, oversold. In a trend it can stay there for a long time, so a move back across -20 or -80 says more than the level. Without smoothing it is jumpy.
In a strategy
A pullback entry in an uptrend when %R falls below -80 and turns back up: ctx.ind("willr", length=14) compared with its value a bar earlier.
Inputs
| Input | Type | Default | Range or choices |
|---|---|---|---|
Lengthlength | Whole number | 14 | min 2, max 5000 |
What it draws
| Line | Drawn as |
|---|---|
| %R | Line |
Moves between -100 and 0. Guide lines at -80, -20.
Used in
No strategy template reads it yet.