Williams %R Level Crossing Strategy Diagram
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Williams %R says where the last close sits inside the highest high and the lowest low of the recent window, on a scale that runs from -100 at the very bottom to 0 at the very top. This diagram does not trade the time spent in an extreme zone, it trades the moment the indicator leaves it: the return above -80 is the buy, the return below -20 is the sell.
Strategy Overview
- Williams %R is calculated on finished candles of a single instrument from the highest high and lowest low of its lookback window.
- Two levels split the scale: below -80 the market counts as oversold, above -20 as overbought.
- A previous-value block keeps the reading of the preceding candle, so a level is tested twice and only the crossing candle produces a signal.
- The current position takes part in both decisions, so no order ever adds to a position already held.
Entry and Exit Rules
- Long entry: The previous %R reading was below the lower level, the current one is at or above it, and the position is not long. The order buys one lot, which opens a long from flat or brings an existing short back to zero.
- Short entry: The previous %R reading was above the upper level, the current one is at or below it, and the position is not short. The order sells one lot, which opens a short from flat or brings an existing long back to zero.
- Exit: There is no separate exit block: the opposite crossing sends a market order of the same volume, so it flattens the position. The crossing condition keeps the diagram from issuing repeated orders while the oscillator remains inside a zone.
Parameters
| Parameter | Default | Description |
|---|---|---|
| Williams %R Length | 14 | Window of the highest high and the lowest low Williams %R is measured over. |
| Lower Level | -80 | Level the indicator has to climb back through to give a buy signal. |
| Upper Level | -20 | Level the indicator has to drop back through to give a sell signal. |
| Volume | 1 | Order volume, in lots. |
| Candles | 00:05:00 | Candle time frame the whole diagram works on. |
Diagram Details
- The candle block feeds the Williams %R indicator block, whose output goes both to the comparison blocks and to a previous-value block.
- Four comparison blocks build the two crossings: the earlier reading against a level and the current reading against the same level.
- The position block is compared with a zero constant twice, giving a not-long guard for the buy side and a not-short guard for the sell side.
- Each logical AND joins the two halves of a crossing with its position guard and fires a position modify block; both take their volume from one shared constant.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.