📉 Williams %R on BTC: should we wait for a reversal?
The **Williams %R** indicator shows how close the current price is to the maximum over a period.
It works in the range from **0 to -100**:
- **0…-20** — overbought (correction possible)
- **-80…-100** — oversold (growth possible)
🔍 BTC/USDT currently
- Price: ~$107,000
- Williams %R (14): around **-25** — closer to the overbought zone
📊 Analysis
1. A value above -20 indicates an overheated market.
2. In previous instances after %R above -20, a pullback of 3–5% often followed.
3. If %R turns down from the overbought zone — prepare for profit taking.
🛠 Strategy (4h)
1. Watch for a breakout from the -20…-10 zone downwards — potential sell signal.
2. Enter LONG — if %R rises from the -90…-100 zone.
3. Combine with RSI, MACD for signal confirmation.
4. Stop-loss: 1–2% from entry price.
5. Take-profit: up to 5%, depending on volatility.
🎯 Tips
- Williams %R works well on volatile instruments.
- In a trend, %R can “hang” in zones — take this into account.
- Works best when paired with oscillators (RSI, Stochastic).
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Do you use Williams %R in your trading? How does it help you?