Stock Terms: What Is William Index?

What are WR indicators? How to see WR indicators? Usage of WR index
Stock WR index:
WR Chinese name William index It means that the relative position of the closing price of the day in the whole price range of the past period is an index of overbought, oversold and strong and weak demarcation. Its main function is to assist other indicators to confirm signals.
William index usage:
1. consider the absolute value of WR.
When WR is above 80, that is oversold The market is coming to the bottom. We should consider buying.
When the WR is below 20, that is, overbought, the market will soon see the top, so we should consider selling.
2. consider the shape of the WR curve.
When WR enters a high position, it usually has to turn back. If the stock price continues to rise, it will have a divergence. It is a selling signal.
After WR enters the low position, the market will rebound. If the share price continues to decline, it will be a divergence. It is a buying signal.
WR repeatedly hit the top (bottom), forming a double or multiple top (bottom), which is a signal to sell (buy).
WR usage experience:
1.W%R can mainly assist RSI to confirm whether it is reliable to turn weak or weak. When RSI passes through 50 yin-yang boundaries, it depends on whether W%R is also 50 above the surface, if synchronization is reliable, if different, it should be considered separately. On the contrary, the same is true when we go through 50. Be careful! When comparing whether the two are synchronized, the parameters set must be relative proportions. Generally speaking, W%R5 days, 10 days and 20 days correspond to RSI6 days, 12 days and 24 days, but readers may adjust their best proportion according to their own test results.
2.W%R means that when overbought or oversold, you should seek immediate attention. MACD signal Support. When W%R indicates overbought, it should be used as an early warning effect / to see if MACD generates DIF to sell signals across the MACD crossover, so it is time to sell MACD signals. On the contrary, when W%R enters the oversold area, it applies the same principle.