The WR William indicator was first published in the book How I made a million dollars trading goods last year published in Larry Williams, 1973. This index is an index to measure the oscillation of the market. According to the swing point of the stock price, it measures whether the stock and index are overbought or oversold, and its main function is to assist other indicators to confirm the signal. It measures the ratio of the distance between the peak (highest price) created by both long and short sides and the daily closing price to the fluctuation range of stock price in a certain period, thus providing the signal of stock market trend reversal. WR William indicator is an indicator of both overbought and oversold, similar to KDJ indicator. It has an antenna, a ground wire and a neutral wire, which are separated by 50 and fluctuate between 0- 100. But there is an important difference between RSI indicator and KDJ indicator, that is, it takes 0 as the top and 100 as the bottom, and its main application principles are as follows:
1, WR William indicator takes 0-20 as the top area and 80- 100 as the bottom area.
2. When the WR William indicator curve enters the overbought area with more than 20 antennas, it is not allowed to act immediately until the curve falls below 20; WR William indicator curve can't act immediately when it enters the oversold area of ground wire below 80, and it can't be bought until its curve breaks through 80. This can effectively overcome the inaccurate signals of WR William indicators, such as overbought, overbought and oversold.
3. If the WR William indicator hits the top four times, hitting the top four times is a very good selling point; If the WR William indicator touches the bottom four times, the fourth touch is a very good buying point. Of course, the "four times" mentioned here can't be copied mechanically, and everything should be decided according to the situation at that time. In addition, WR William indicator and RSI indicator can be used together to improve the accuracy of the signal.