Williams %R on Quotex — Momentum Oscillator
Williams %R Calculation
Williams %R = ((Highest High − Current Close) / (Highest High − Lowest Low)) × -100. The formula compares current close to the highest high of the lookback period. Output ranges 0 to -100. Values near 0 = close near recent high (overbought); values near -100 = close near recent low (oversold). The scale is INVERTED compared to most oscillators (RSI, Stochastic) which range 0-100 with high values = overbought.
Default Settings and Levels
| Parameter | Default Value | Meaning |
|---|---|---|
| Period | 14 | Lookback window in candles |
| Overbought level | -20 (close to 0) | Strong recent up momentum |
| Oversold level | -80 (close to -100) | Strong recent down momentum |
Williams %R Signals
- Signal 1 — Crosses below -20 (from overbought zone) → PUT signal
- Signal 2 — Crosses above -80 (from oversold zone) → CALL signal
- Signal 3 — Stays in extreme zone (>-20 or <-80) for 10+ candles → strong trend in that direction
- Signal 4 — Divergence from price (price higher high but Williams %R lower high) → bearish divergence
- Signal 5 — Sudden direction change (Williams %R turns sharply) → momentum shift
Williams %R vs Stochastic Oscillator
Both are momentum oscillators with overbought/oversold concepts. Key differences:
| Aspect | Williams %R | Stochastic Oscillator |
|---|---|---|
| Scale | 0 to -100 (inverted) | 0 to 100 |
| Overbought | Above -20 | Above 80 |
| Oversold | Below -80 | Below 20 |
| Smoothing | None (raw calculation) | %K smoothed by %D line |
| Reactivity | Faster (more noise) | Smoother (cleaner signals) |
| Best use | Quick scalping signals | Trend continuation timing |
When Williams %R Works Best
- Ranging markets — overbought/oversold signals work cleanly at range boundaries
- Short timeframes (1m-15m) — Williams %R's fast reactivity catches short-term momentum
- Confirmation indicator — use alongside other strategies for entry timing
- Divergence detection — visible divergence patterns useful for reversal signals
Williams %R FAQ
Should I use Williams %R or Stochastic?
Both serve similar purposes. Williams %R is faster (more signals, more noise). Stochastic is smoother (fewer signals, more reliable). For 5m-15m binary timing, Stochastic typically performs slightly better; for 1m scalping, Williams %R's speed has advantage. Test both on your specific assets and timeframes.
Is the inverted scale confusing?
Initially yes. Most platforms display Williams %R with auto-inverted Y-axis showing 0 at top and -100 at bottom — looks like standard oscillator visually. The interpretation is the same: extreme values at top = overbought; extreme at bottom = oversold.
What's the most reliable Williams %R signal?
Divergence — price makes new high but Williams %R makes lower high (bearish divergence) or vice versa. Similar to RSI divergence. Win rate ~63-67% with candle pattern confirmation.
Does Williams %R work on cryptocurrency?
Yes — particularly on 5m-15m timeframes during US session. BTC and ETH show clear Williams %R extremes that mean-revert reliably during ranging phases. Skip during strong trends (Williams %R stays at extreme for many candles).
Can I use the same settings on all timeframes?
Default 14 works across timeframes. For 1m charts, some traders use 7 for faster response. For 1h+ charts, 14 or 21 for smoother signals. Adjust based on what produces cleanest signals on your test backtest.
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