This strategy seeks momentum bursts by watching Williams %R relative to its historical average. When the oscillator pushes far beyond typical readings, it may signal the start of a strong move.
A long position is opened when %R climbs above the average plus
Multiplier times an estimated standard deviation. A short position is taken when %R drops below the average minus the same multiplier. The trade closes once %R returns toward its average or a stop-loss is hit.
The approach caters to breakout traders who want early participation in emerging trends. Position risk is managed with a percentage stop based on the entry price.
- Entry Criteria:
- Long: %R > Avg + Multiplier * StdDev
- Short: %R < Avg - Multiplier * StdDev
- Long/Short: Both sides.
- Exit Criteria:
- Long: Exit when %R < Avg
- Short: Exit when %R > Avg
- Stops: Yes, percent stop-loss.
- Default Values:
- WilliamsRPeriod = 14
- AvgPeriod = 20
- Multiplier = 2.0m
- CandleType = TimeSpan.FromMinutes(5)
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: Williams %R
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk Level: Medium