Williams %R /w Bollinger
Williams %R V2 with Bollinger Bands
Due to the positive messages i got for the first version of "%R MA" indicator, i decided to develop an extended version of “%R MA” and I introduce you “%R V2 with Bollinger Bands”
Enhanced with additional features, such as Bollinger Bands to analyse waves, which can help traders determine if there is a buy or sell signal about to occur.
What’s changed?
V2 inherits all of the features of the first indicator and contains several additional features such as:
-Bollinger Bands
-Additional type of moving average to help to determine support and resistance levels.
-Background color change in case of possible trend reversal.
-Williams %R line colors to determine if the current is strong enough to continue or it’s a reversal.
-More customization
New Visuals
Background coloring comes by default and transparency level is adjustable, so traders can make it more or less visible any time they want. Background color turns red when Williams crosses overbought level and turns green when it crosses oversold level. This way trader can spot and analyse duration of overbought and oversold phase for the stocks/commodities/currencies they want. Rather than just giving only a signal, background colors also could be useful to determine, how the certain stock/commodity/currency behaved at certain levels before.
Red Line:
Red line is the newly introduced moving average for this indicator, which helps to determine resistance and support levels for Williams moves. It’s very similar to WMA;but it responds to price changes/moves much faster.
Bollinger Bands:
This is the key feature of this indicator. As a standalone indicator, it’s mostly used to monitor volatility and have certain strategies while entering or exiting a trade. Since price changes reflects to Williams indicator, I thought applying Bollinger Bands on Williams would be a good idea. Although, it requires at least basic knowledge of Bollinger Bands, it’s still quite easy to use since there are circles/crosses to warn traders for possible trend changes. Red little crosses at the middle represents Bollinger Bands moving average, so when Williams crossover continue to uptrend, that’s a buy signal. If %R reaches to Bollinger Upper Bands and crosses the band, it’ll draw a circle (aqua) to warn traders that the certain stock/currency is now at overbought area and be ready to sell. If you are using a trailing stop-loss, make sure you move your stop-loss in case if a sudden bearish move happens.
Similar to overbought bands, oversold bands act similar and when %R line crosses Bollinger Lower Bands, it’ll draw a red cross which indicates, trend might make a reversal so if you are in a short position you can either close your position or if you are using a trailing stop-loss method, make sure you have you set your stops at profitable levels, in case if there is a sudden bullish move. If you are waiting for a buy signal, wait for a confirmation both from chart and the indicator.
Also if both Bollinger Bands get closer to moving average in the middle, that usually leads to a huge move for both directions. Although, if that happens where there are several oversold(buy) signals, that usually leads to an explosive uptrend move. Same goes for the overbought(sell) signal.
As for any indicator, traders should always wait for a confirmation to buy and sell. And should not rely on a single indicator. Certain stocks/currencies may make unexpected moves so monitor price and trend changes closely on the chart as well.
Williams Line Colors:
Green line mostly represents an uptrend and as long as it goes up with the same color, that means price is still going up and uptrend still continues. If there are are small moves with red or blue lines in the middle of this move, that might be a small retracement, if that happens, make sure to watch out for the next candle. If move ends up with an overbought signal, trend may make a reversal. If current or upcoming candle manages to close above the previous candle, Williams will continue to draw a green line.
Blue line indication depends on the move length. If that happens during an uptrend, this move might end up with a small retracement. However, if blue line appears after an overbought signal, that means there might be a considerable retracement. Blue lines only appear closer to overbought levels and once it breaks WMA and red line support, color will be changed to red from blue. Blue line should be considered as reversal signal along with the overbought visuals. Also, if prices consolidate around similar prices; but each new bar closes below the previous bar, Williams will continue to draw a blue line, until it reaches to certain lower or upper level.
Red/Orange line appears when prices could not keep up and candles continues to make lower closes. This line is an indication of a downtrend and will appear below -50 level which is somewhat middle for this indicator. Orange lines appear almost at the bottom most of the time if there are no new lower lows at the present, these signals can be used to buy from the low. Although traders should wait for a green line and a green candle confirmation. If there are one or more oversold signals close to both red and orange lines, that will strengthen the possibility of a buy signal.
NZDUSD
ETHUSD
XAUUSD
Due to the positive messages i got for the first version of "%R MA" indicator, i decided to develop an extended version of “%R MA” and I introduce you “%R V2 with Bollinger Bands”
Enhanced with additional features, such as Bollinger Bands to analyse waves, which can help traders determine if there is a buy or sell signal about to occur.
What’s changed?
V2 inherits all of the features of the first indicator and contains several additional features such as:
-Bollinger Bands
-Additional type of moving average to help to determine support and resistance levels.
-Background color change in case of possible trend reversal.
-Williams %R line colors to determine if the current is strong enough to continue or it’s a reversal.
-More customization
New Visuals
Background coloring comes by default and transparency level is adjustable, so traders can make it more or less visible any time they want. Background color turns red when Williams crosses overbought level and turns green when it crosses oversold level. This way trader can spot and analyse duration of overbought and oversold phase for the stocks/commodities/currencies they want. Rather than just giving only a signal, background colors also could be useful to determine, how the certain stock/commodity/currency behaved at certain levels before.
Red Line:
Red line is the newly introduced moving average for this indicator, which helps to determine resistance and support levels for Williams moves. It’s very similar to WMA;but it responds to price changes/moves much faster.
Bollinger Bands:
This is the key feature of this indicator. As a standalone indicator, it’s mostly used to monitor volatility and have certain strategies while entering or exiting a trade. Since price changes reflects to Williams indicator, I thought applying Bollinger Bands on Williams would be a good idea. Although, it requires at least basic knowledge of Bollinger Bands, it’s still quite easy to use since there are circles/crosses to warn traders for possible trend changes. Red little crosses at the middle represents Bollinger Bands moving average, so when Williams crossover continue to uptrend, that’s a buy signal. If %R reaches to Bollinger Upper Bands and crosses the band, it’ll draw a circle (aqua) to warn traders that the certain stock/currency is now at overbought area and be ready to sell. If you are using a trailing stop-loss, make sure you move your stop-loss in case if a sudden bearish move happens.
Similar to overbought bands, oversold bands act similar and when %R line crosses Bollinger Lower Bands, it’ll draw a red cross which indicates, trend might make a reversal so if you are in a short position you can either close your position or if you are using a trailing stop-loss method, make sure you have you set your stops at profitable levels, in case if there is a sudden bullish move. If you are waiting for a buy signal, wait for a confirmation both from chart and the indicator.
Also if both Bollinger Bands get closer to moving average in the middle, that usually leads to a huge move for both directions. Although, if that happens where there are several oversold(buy) signals, that usually leads to an explosive uptrend move. Same goes for the overbought(sell) signal.
As for any indicator, traders should always wait for a confirmation to buy and sell. And should not rely on a single indicator. Certain stocks/currencies may make unexpected moves so monitor price and trend changes closely on the chart as well.
Williams Line Colors:
Green line mostly represents an uptrend and as long as it goes up with the same color, that means price is still going up and uptrend still continues. If there are are small moves with red or blue lines in the middle of this move, that might be a small retracement, if that happens, make sure to watch out for the next candle. If move ends up with an overbought signal, trend may make a reversal. If current or upcoming candle manages to close above the previous candle, Williams will continue to draw a green line.
Blue line indication depends on the move length. If that happens during an uptrend, this move might end up with a small retracement. However, if blue line appears after an overbought signal, that means there might be a considerable retracement. Blue lines only appear closer to overbought levels and once it breaks WMA and red line support, color will be changed to red from blue. Blue line should be considered as reversal signal along with the overbought visuals. Also, if prices consolidate around similar prices; but each new bar closes below the previous bar, Williams will continue to draw a blue line, until it reaches to certain lower or upper level.
Red/Orange line appears when prices could not keep up and candles continues to make lower closes. This line is an indication of a downtrend and will appear below -50 level which is somewhat middle for this indicator. Orange lines appear almost at the bottom most of the time if there are no new lower lows at the present, these signals can be used to buy from the low. Although traders should wait for a green line and a green candle confirmation. If there are one or more oversold signals close to both red and orange lines, that will strengthen the possibility of a buy signal.
NZDUSD
ETHUSD
XAUUSD