Do you often hear traders talk about WR? So, WR or Williams Percent Range is a technical indicator developed by Leslie Williams to help us read market momentum. Basically, this is a really useful tool for identifying when the market is overbought or oversold.

So how does it work? This indicator calculates the difference between the current price and the highest and lowest prices within a certain period, usually 14 periods. The result will range from -100 to 0. The formula is simple: WR = ((Hn - C) / (Hn - Ln)) × (-100), where C is the current price, Hn is the highest price in n periods, and Ln is the lowest price in n periods.

Now the important part—how do you read it? When the WR value approaches -100, it means the market is in a strong oversold condition, with bearish momentum dominating. On the other hand, if the value approaches 0, the market is in an overbought condition, and bullish momentum is at its peak. The zone between -20 and 0 is usually considered buy saturation, while -80 to -100 is the oversold zone.

So what is WR actually used for in trading? When the indicator is below -80, it could signal that a buy opportunity appears, especially when the market starts to rebound. Conversely, if the level is above -20 and a bearish signal is seen, that’s a good time to consider selling or closing your position. Many traders like to use WR in volatile markets because it can help identify extreme momentum—either maximum buy pressure or maximum sell pressure. So in short, WR helps us time entries and exits more accurately by reading when the market has moved too far in one direction.