Stock W&r William Indicator form diagram

I. Use

The indicator implies that the relative position of the closing price of the day in the full range of prices over the past period is an indicator of overbought and weak boundaries . Its main function is to assist other indicators to confirm the signal.

Two How to use
1, from the absolute value of WR to consider.
A, when the WR is above 80, that is in the oversold state, the market is about to see the bottom, should consider buying.
B, when the WR is below 20, that is in the overbought state, the market is about to peak, should consider selling.
C, Wms%r=50 is a multi-empty balance line, wear or fall below this line, is a sound investor trading signals.
2. Consider the curve shape of WR.
A, after the WR entered the high, generally want to look back, if the stock price also continues to rise, this produces divergence, is the signal to sell.
B, after the WR entered the low, a plate to rebound, if the stock prices continue to decline, this will produce a divergence, is a buy signal.
C, WR successive hit the top (bottom), the local formation of double or multiple top (bottom), is to sell (Buy) signal.

D, because of its randomness, if it enters the overbought area, does not mean that the price will fall immediately, as long as the fluctuations in the meantime, is still strong. A sell signal is issued when a high-wms%r=20 is purchased.

Stock W&r William indicator form diagram