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Reversals scan

Williams %R Oversold Screener

This scan finds stocks where Williams %R (14) crossed above −80 on the latest day, moving out of the oversold zone.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: williams %r crossed above -80

  1. Williams %R(14) crossed above -80

Find US stocks where Williams %R (14) crossed above -80 today.

Formula view
crosses_above(williams_r(14), -80)
Example chart: Williams %R turns upDaily candles of a made-up sample stock with Lower panel: Williams %R (14), dotted lines at -80 and -20. The shaded day is the day the scan fired.
  • Lower panel: Williams %R (14), dotted lines at -80 and -20
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Williams %R was created by Larry Williams. It shows where today's close sits within the high-low range of the last 14 days, on a scale from 0 to −100. Readings below −80 are called oversold; above −20, overbought.

It is closely related to the stochastic oscillator, but drawn upside down. A move back above −80 suggests the stock has stopped closing near the bottom of its range.

How traders use it

  • Add an uptrend filter to trade dips in strong stocks.
  • Short-term traders often aim for a move toward −50 or −20.
  • Use the recent low as your stop.

Watch out for

  • It is a fast indicator with many signals, so false signals are common.
  • In downtrends, rallies out of oversold often fail quickly.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What does Williams %R below -80 mean?

The close is in the bottom 20% of the 14-day range: the stock is oversold in the short term.

Williams %R or stochastic: what is the difference?

They measure almost the same thing. Williams %R uses a scale from 0 to −100 and is usually not smoothed; the stochastic uses 0 to 100 and often adds smoothing.

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