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Reversion Docs

WilliamsR Overview

Williams %R measures where the current close sits relative to the highest high over n periods, on a -100 to 0 scale. It’s essentially an inverted Stochastic Oscillator — values near 0 indicate overbought (close near high), values near -100 indicate oversold (close near low).

Williams %R is faster and more sensitive than Stochastic because it has no smoothing — it reports raw position within the range, making it useful for quick reversal detection.

How Williams %R Works

Section titled “How Williams %R Works”

Core Concept

Section titled “Core Concept”
  1. Calculate WilliamsR value from the input price/volume data
  2. Apply smoothing if applicable
  3. Compare to threshold or signal line for signal generation
  4. Interpret: Signals indicate momentum direction or extremes

Key Characteristics:

  • Momentum Indicator = Measures momentum direction and strength
  • Signal Line Available = Yes
  • Bounded = Yes (-100 – 0)

Visual Interpretation

Section titled “Visual Interpretation”

WilliamsR Behavior:

  • Overbought — potential reversal
  • Oversold — potential reversal
  • Signal line crossovers provide timing signals

Trading Signals Available on Reversion

Section titled “Trading Signals Available on Reversion”

These are the signal names you select when configuring WilliamsR in the algorithm builder or via the MCP agent:

SignalTriggers WhenTypical Use
williamsR_above_thresholdWilliams %R rises above threshold (e.g., -20)Overbought — potential reversal
williamsR_below_thresholdWilliams %R falls below threshold (e.g., -80)Oversold — potential reversal
williamsR_above_signalLineWilliams %R crosses above signal lineMomentum improving
williamsR_below_signalLineWilliams %R crosses below signal lineMomentum declining

Display: Separate pane

Category: Momentum

Threshold range: -100 – 0

Key Characteristics

Section titled “Key Characteristics”

What Williams %R Does Well:

  • Clear Overbought/Oversold Signals
  • Combines well with trend filters
  • Signal line crossovers signals for entry timing