Williams %R oscillates between 0 and -100 to show when price closes near the extremes of its recent range. This strategy fades those extremes once the indicator stretches far from its own average.
A long trade triggers when Williams %R falls below the average minus DeviationMultiplier times the standard deviation. A short trade is taken when it rises above the average plus that multiplier. Exits occur when Williams %R moves back toward its average level.
The approach suits traders who rely on momentum exhaustion to time entries. A protective stop-loss limits risk if price keeps moving to new extremes.
Entry Criteria:
Long: %R < Avg - DeviationMultiplier * StdDev
Short: %R > Avg + DeviationMultiplier * 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
AveragePeriod = 20
DeviationMultiplier = 2m
CandleType = TimeSpan.FromMinutes(5)
[*]Filters:
Category: Mean Reversion
Direction: Both
Indicators: Williams %R
Stops: Yes
Complexity: Intermediate
Timeframe: Intraday
Seasonality: No
Neural networks: No
Divergence: No
Risk Level: Medium