%R Archives - Trading Rush

If you were asked to find the end of the pullback, you can use indicators like MACD that gave an excellent win rate on the Trading Rush Channel, or you can use something like this, a not so RSI indicator that we saw in the previous video. When I tested the Williams Percent Range indicator 100 Times, I found out that it does a faster job at detecting the end of a pullback. But since faster doesn’t always mean useful, it won multiple trades in a row at the start as you can see in the Trading Rush App, but then the profit graph line stopped moving up, or down.

The Williams Percent R indicator detected the end of a pullback with good accuracy, but soon, it was quite noticeable that after a decent size pullback, it was giving signals at almost every momentum loss. For example, this is a good downtrend. The price is below the 200 period moving average, and when the upward momentum of the pullback was lost, the Williams Percent R, gave an entry signal pretty much at the first red candle. This trade was won because the price made a good move in the trend direction right after this red candle. But if we scroll to the left a little bit, you will see that when the price doesn’t immediately go down, after the first momentum loss of the pullback in a downtrend, the Williams Percent R indicator, gives entry signals at almost every red candle.

That’s not all. Since it gives faster signals, the trade often stopped out because the price made a move in the opposite direction, touched the stoploss, and then moved towards the profit target. Because of this, the profit graph went in the upward direction when the trades were won, but then came down when the Williams Percent R gave false signals in a bigger pullback.

The Williams percent R is good in the good market, but then again, almost every strategy performs well in the good market. In the Trading Rush App, it got a 44 percent approximate win rate, and the Williams Percent Range Trading Strategy we discussed in the previous video, made money because of the 1.5 to 1 Reward Risk Ratio. But if we look at the profit graph, we can see that for the most part, the profit line almost went in the sideways direction, and not consistently going up or down like some other trading strategies we have tested on the Trading Rush Channel. In the last video, we saw that Williams Percent Range was similar to the Stochastic Indicator, what’s interesting is that the Stochastic indicator we tested 100 times, and this Williams Indicator, both made money, and won multiple trades in a row at the start, but then lost momentum. So the similarity checks out in the profit graph as well.

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The Williams Percent Range gets a TR Score of 24.3 out of 50. And on the Trading Rush Website, it ranks 19th from the top, below the RSI Supertrend Trading Strategy, and above the Hull Moving Average with SMA Strategy. That’s all! Like the video to see more! Thanks!

RSI’s long-distance cousin… Williams %R

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If RSI and Stochastic Indicators had a long-distance cousin, this would be it. But unlike the RSI or Stochastic Indicator, this one has upside down. RSI and Stochastic Indicator, both range from zero to 100 by default. This indicator, on the other hand, ranges from negative hundred to zero. This is the Williams Percent Range, no it is not created by the same Bill Williams who gave us one of the best indicators we have seen on the Trading Rush Channel. This Williams Indicator was created by Larry Williams, but is it any good? We will find that out when we test it 100 times.

The Williams Percent R, compares and shows you where the current price is relative to the highest high. By default, it will come with the length of 14, which in other words means that it will look at the highest high of the last 14 candles to calculate its value.

Since it comes from the same family as RSI and Stochastic, the Williams Percent Range value above the negative 20 is considered as overbought, and the Williams Percent Range value below negative 80 is considered as oversold. Keep in mind that these values are in negative, but since this indicator is similar to the Stochastic Indicator, it is best used in the Range Market. But if you want to have a higher probability of making money in trading, using it with a 200 period Exponential Moving Average to trade with the trend is always a good idea.

With the Williams Percent R, traders look for the Percent R line, and buy when the Percent R line crosses above the negative 80 level.

And many traders sell when the Percent R line crosses below the negative 20 level. When traders buy when the Percent R crosses above the negative 80 level, they think that the price coming out of an oversold area is an indication of decreasing sellers and increasing buyers. Similarly, traders sell when the Williams Percent R crosses below the negative 20 level, because they think that the price coming out of an overbought area is an indication of decreasing buyers and increasing sellers. That’s good and all, but you can increase the win rate of this strategy by buying and selling where the price is already heading.

In other words, when the price is above the 200 period moving average, only take buy signals when the Williams Percent R line crosses above the negative 80 level. Ignore all short signals because the price above the 200 EMA, indicates an uptrend. Set the stoploss below the recent pullback.

When the price is staying below the 200 exponential moving average, only take short signals when the Williams Percent R line crosses below the negative 20 level. Ignore all long signals because the price below the 200 EMA, indicates a downtrend. Set the stoploss above the recent pullback of the trend.

But is the Williams Percent Range Really worth trading? We will take 100 Trades with this trading strategy in the next video to find its win rate. Subscribe to see it! Thanks!