Libraries: A WRP Based Trailing Stop Module

[Automated-Trading]

A WRP Based Trailing Stop Module:

A trailing stop module based on the WPR indicator with short an long Stop Loss

Author: Egor Murikov

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Indicators: iWPR_HTF

newdigital, 2014.03.31 12:17

Williams Percent R Technical Indicator

Williams %R Technical Indicator Developed by Larry Williams 

Williams %R indicator is pronounced as Williams percent R indicator. Williams %R Technical Indicator is a momentum oscillator used to analyze overbought and oversold levels in the Forex markets.

The Williams % Range oscillator is similar to the Stochastic Oscillator indicator, apart from that fact that the %R is plotted upside down on a negative scale that is from 0 to -100 and the indicator does not apply a smoothing factor.

The Williams %R indicator analyses the association of the closing prices relative to the High and Low range over a selected number of n candlesticks. 

• The closer the closing price of a candlestick is to the highest high of the range selected the closer to zero the %R reading will be.
• The closer the closing price of a candlestick is to the lowest low of the range selected the closer to -100 the %R reading will be.

When doing technical analysis a trader should ignore the minus sign placed before the value, for example -40, the - sign should be ignored, just remember the indictor values are placed in an upside down manner. 

• At zero: If the closing price of the candlestick is equal to the highest high of the range the William %R reading will be 0.
• At -100: if the closing price of the candlestick is equal to the lowest low of the range the William %R reading will be -100.

Technical Analysis of Williams Percent R Technical Indicator 

Overbought/Oversold Levels

• Overbought- Williams %R values from 0 to -20 are considered overbought while
• Oversold- Williams %R values from -80 to -100 are considered oversold. 

As for trading overbought/oversold levels it is best to wait for a currency pair to change direction before taking a signal in the opposite direction. For Example if a currency pair is oversold it is best to wait for the trend to reverse and start to head in an upward direction before buying the currency pair.

[Alain Verleyen]

There is a little bug in this module. Attached is the correct version.