-
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
-
How to open an FBS account?
Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
-
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Trader Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
Williams’ Percent Range (%R)
Williams Percent Range, or %R for short, is a technical indicator developed by Larry Williams in 1973. This is a simple, but efficient oscillator which shows the speed with which the price is moving.
How to implement
%R is included in the default set of MetaTrader indicators, so you don’t need to download it. Go to “Insert” – “Indicators” – “Oscillators” – and you will see the Williams’ Percent Range.
By default, the indicator’s period is 14. You can change this parameter if necessary.
How to interpret % R indicator
Williams %R is a momentum oscillator. It resembles the Stochastic Oscillator a lot. The difference between them is that Stochastic compares open and close prices of different periods, while Williams R indicator uses only the closing price and compares it with the high-low range over a specific period.
Unlike the Stochastics oscillator, the Williams % R is not graded from down to up but from up to down. This means that the lower indicator values are found at the upper part of the indicator window and the figures increase in descending order as the indicator line moves from up to down. Therefore the 0 level is located at the top, and the – 100 value is located below.
%R shows when the market is overbought or oversold. If %R is between -100 and -80, the market is oversold and one should start thinking of buying. If %R is between 0 and -20, the market is overbought and one should start thinking of selling.
Notice though that an overbought or oversold reading doesn't mean the price will reverse. Overbought simply means the price is near the highs of its recent range, and oversold means the price is in the lower end of its recent range. As a result, it’s not recommended to use this kind of signal as our only hint for the market entry. Remember that this indicator requires a confirmation from price action or other tools of technical analysis.
One of the simplest and yet efficient filters is to look for a situation when the price leaves the oversold area during an uptrend. This may be your cue to buy. In turn, if there’s an overall downtrend, confirmed by visual analysis or indicators, look for the price to exit the overbought zone to initiate a sell trade. Using this type of strategy, you can combine Williams %R with such indicators as Bollinger Bands or Envelops.
Traders can also use the %R to track momentum failures. During a strong uptrend, the price often reaches -20 or higher levels. If the indicator falls, and then can’t return above -20 before falling again, it means that the upward price momentum has declined and a bigger price decline may follow.
The same is true for a downtrend. Readings of -80 or lower are often reached. When the indicator can no longer get those low levels before moving higher it can indicate the price is going to increase.
In addition, just like other oscillators, Williams %R produces signals when it diverges with the price chart. But if the new price low is below the previous one, while the %R chart new low is higher than the previous one. Sell if the new price high is above the previous one, while on the %R chart new high is lower than the previous one.
Conclusion
Williams’ Percent Range perfectly manages to fulfill the task of highlighting the overbought and oversold areas. Like all other indicators, it requires confirmation and should be used in combination with other tools.
2022-04-12 • Updated
Other articles in this section
- The McClellan Oscillator
- Aroon Indicator Trading Strategy
- Currency strength
- Moving Averages Ribbon: How to Find Entry Point
- Best Time Frames for Trading
- Renko charts Japanese candlestick chart
- Types of charts
- How to Use a Heikin-Ashi Chart?
- Quantitative Easing Policy (QE)
- Pivot Points
- What Is a ZigZag Indicator?
- Moving Average
- What Is Relative Vigor Index (RVI Indicator)?
- Momentum
- Force index
- What Is Envelopes Indicator?
- Bulls Power and Bears Power
- Average True Range
- How to trade on central bank decisions?
- CCI (Commodity Channel Index)
- Standard deviation
- Parabolic SAR
- Trading with Stochastic Oscillator
- Relative Strength Index
- MACD (Moving Average Convergence/Divergence)
- Oscillators
- ADX Indicator: How To Use It For Effective Forex Trend Analysis
- Bollinger bands
- Trend indicators
- Introduction to technical indicators
- Support and resistance
- Trend
- Technical analysis
- Central Banks: policy and effects
- Fundamental factors
- Fundamental Analysis in Forex and stock trading
- Fundamental vs technical analysis
