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.
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.
- 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