What is the difference between Williams %R and Stochastic?

Williams %R measures where the close is relative to the high, while Stochastic measures relative to the low. Williams %R scale is 0 to -100, Stochastic is 0 to 100.

Key Takeaways

Difficulty:Beginner

Reliability:Moderate

Category:momentum

Timeframes:15M, 1H, 4H

Williams %R

momentum📊 15M, 1H, 4H

Momentum oscillator measuring overbought/oversold levels on a scale of 0 to -100.

Formula

Code

Williams %R = (Highest High - Close) / (Highest High - Lowest Low) × -100

Detailed Explanation

Williams %R was developed by Larry Williams. It's similar to the Stochastic Oscillator but uses an inverted scale.

Key Levels:
- 0 to -20: Overbought
- -80 to -100: Oversold

Key Difference from Stochastic:
Williams %R compares close to the high of the range, while Stochastic compares to the low.

Trading Setup Example

Entry, stop loss, and take profit levels.

📈 Buy Setup

📉 Sell Setup

Always wait for signal confirmation before entering a trade.

Where This Indicator Works Best

Trend context and market position.

📈 Bullish Context

📉 Bearish Context

Detects overbought/oversold in trending and ranging markets.

Live Chart — Williams %R

See Williams %R in action on a live chart. Try changing the settings and timeframe.

Charts powered by TradingViewGet TradingView Pro →

Parameters

Period

Default: 14

Lookback period

📈 Bullish Signals

Williams %R crosses above -80 from oversold

📉 Bearish Signals

Williams %R crosses below -20 from overbought

Python Implementation

Williams %R calculation

Python

import pandas_ta as ta

df['Williams_R'] = ta.willr(df['high'], df['low'], df['close'], length=14)

TradingView Pine Script

Try on TradingView

JavaScript

//@version=5

indicator("Williams %R")

wr = ta.wpr(14)

plot(wr, "Williams %R", color=color.purple)

hline(-20, "Overbought")

hline(-80, "Oversold")

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MT5 MQL5 Code

C++

int wr_handle = iWPR(_Symbol, _Period, 14);

double wr[];

CopyBuffer(wr_handle, 0, 0, 3, wr);

Python Libraries

pandas-ta

Technical analysis

pip install pandas-ta

Common Mistakes

✗Confusing the inverted scale

✗Using in strong trending markets

Confirmation Signals

Price action

Support/resistance

Volume

Best For

Overbought/oversoldShort-term reversalsMarket timing

💡 Pro Tips

•Scale is inverted: 0 to -100
•More sensitive than RSI
•Best in ranging markets

Last updated: February 8, 2026

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical Indicators— Financial Education BabyPips - Technical Indicators— Trading School MetaTrader 5 Docs— Official Documentation

Frequently Asked Questions

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Commodity Channel Index (CCI)

Measures price deviation from statistical mean. Values typically range from -100 to +100.

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