Williams %R

Williams %R is a momentum indicator that measures overbought and oversold levels. It compares the current price to the highest price over a specific period, typically 14 periods. The formula is 100 * (Highest High - Close) / (Highest High - Lowest Low).

Williams %R matters as it helps traders identify potential reversals in the market. When the indicator is above -20, the asset is considered overbought, suggesting a potential sell signal. Conversely, when it's below -80, the asset is oversold, indicating a potential buy signal. For example, if Williams %R on EUR/USD is -15, it suggests the pair might be overbought, and a sell signal could be triggered.