The Williams %R
Fibonacci And Williams %R Trading Strategy. You can use the oscillator as the source of the confirmation signal. If you have your favorite oscillator, test it and check what the signal works as the best confirmation. Here I will show you Fibonacci And Williams %R Trading Strategy, where williams% traders use it for 33 back periods. For less than 1 hour of time frame, I use 50 periods.
It is slightly different oscillator because its range is between 0 (at the top) and -100 (bottom). When the line is between 0 and -20, the price is high. When the line is between -100 and -80, the price is oversold; Stochastic is similar to an oscillator, but the levels are different.
Williams% R important things:
1. Important support on an oscillator / a break of resistance – I use it specifically when the price action is not clear to me.
Many people do not know that you can also pull support, resistance and trend line on the oscillator! I find this very useful. When price action for me is very blurry, then I find some tips on an oscillating chart by dragging the trend lines out there.
2. A break in the overbought or oversold area.
In an uptrend, when there is a correction, I look at the oscillator and wait till its value comes back to the level of -20 and then I enter a long position.
In Fibonacci trading, I find it very good and effective. By using good money management and Williams% R, your results should be better.