Different indicators have different meanings and applications, and many people will pay attention to the rise and fall of some stocks. Wr indicator is the William indicator in stocks, which studies the short-term and medium-term changes of stocks. Investors should note that technical indicators are lagging behind and cannot be used as the only standard for stock investment. The following is the usage of wr indicator in 202 1 collected by Bian Xiao _ Skills of using wr indicator in futures. I hope I can help you.
Use of water resources index
W and R are indicators to measure market oscillation, which refer to the principle of buying when it is strong and selling when it is weak. On the contrary, when the improved W runs downward, it indicates that the medium-term trend is weakening.
Detailed explanation of wr index
Wr index is an oscillation index, which measures whether the stock/index is overbought or oversold according to the swing point of the stock price. It measures the ratio of the distance between the peak (highest price) created by both long and short parties and the daily closing price to the fluctuation range of the stock price within a certain period of time (such as 7 days), thus providing the signal of the stock market trend reversal.
Usage of wr indicator: When the short-term William indicator goes up through the long-term William indicator, the golden fork is a buying signal, and when the short-term William indicator goes down through the long-term William indicator, the dead fork is a selling signal. When the short-term William index is greater than the long-term William index, it is in a bull market, and when the long-term William index is greater than the short-term William index, it is in a short market.
In the practical use of WR index, the parameters of WR index from 30 to 50 are short-term, those above 100 are medium-term and those above 200 are long-term. WR index is higher than 80, and the market is oversold. WR low price deviates from the price, the price does not innovate, buy. The WR index is below 20, and the market is in a strong position. WR wears size 20, the price reaches the highest point, then falls back and sells in the shade. WR climbed to the top several times in a row, and the value of WR was close to or equal to 0, forming a multi-top shape. The price peaked and fell back to the negative line, selling.
Skills of using wr index in futures
William indicator mainly depends on the relative position of the closing price of the day in all prices in the short term. When ordinary investors want to check the data of overbought or oversold stocks, they use William indicator WR as a reference. What is the formula for calculating this index?
Use of World Water Resources Index
When it comes to using wr William indicator in futures, not only in futures, it generally implies overbought and oversold, and 80 is the limit. If the wr indicator turns head down, but the stock price continues to rise, it is a deviation. Using William indicator WR alone cannot 100% help investors make investment decisions, so investors can combine William indicator WR with other indicators to make investment decisions more safely.
When it is higher than 80, that is, white oversold, the situation of banks is about to bottom out, and wisdom should consider buying. When WR is below 20, it is overbought and the market is about to peak, so we should consider selling. When WR reaches a high level, it is generally necessary to turn back. If the stock price continues to rise, there will be a deviation, which is a selling signal. After WR enters a low level, if the stock price continues to fall, there will be a deviation, which is a buying signal.
The formula for calculating the wr index is: w% r = (HN-C) ÷ (HN-LN) × 100, where: n is the trading cycle set by the trader (usually 30 days); C: the latest closing price on the nth day; Hn: It is the highest price in the past n days (for example, the highest price in 30 days); Ln: It's the lowest price in the past n days (for example, the lowest price in 30 days).