Williams %R Hook Reversal Strategy

The Williams %R Hook Reversal follows the Williams %R indicator as it quickly snaps back from an extreme. When the reading moves above -20 or below -80 and then hooks toward the center, the prior thrust is likely exhausted.

Testing indicates an average annual return of about 172%. It performs best in the forex market.

The strategy buys when %R reverses higher from oversold while price presses new lows and sells when it hooks downward from overbought during new highs.

A tight percent stop controls risk and trades exit once %R hooks in the opposite direction or the stop triggers.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Reversal
  • Direction: Both
  • Indicators: Williams %R
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium