William index tactics
William indicator indicates the relative position of the closing price of the day in all price ranges in the past period of time, so the calculated WR value is between 0- 100. The closer to 0, the closer the current price is to the lowest price in the past 14 days; The closer to the value of 100, the closer the current price is to the highest price of 14 days in the past. From this point of view, it may be easier to understand the judgment of William index.
The definition of WR indicator: it is the relative position of the closing price of the day in the whole price range in the past period, and it is a technical indicator with both overbought and oversold, with strong and weak boundaries. It is calculated by the highest price, lowest price and closing price at the end of the analysis period. Take the daily William index as an example, and its calculation formula is: wr = (HN-C) ÷ (HN-LN) × 100.
Where: C is the daily closing price of calculation, Ln is the lowest price of N period, Hn is the highest price of N period, and N in the formula is the selected calculation time parameter, generally 4 or 14. Take 14 days as an example, the calculation process is as follows: WR( 14 days) = (h14-c) ÷ (h14-l14) ×/kloc-0. )
The use of William index
In William indicator technology, when the blue line and red line of William indicator are in a bonded state, and both are bonded above 80%, it means that the market is oversold, the stock price will rebound at any time, there is a chance of short-term operation, or there is a sudden rise. When both the blue line and the red line of the William indicator are bonded, and both are bonded below 20, it means that the market is overbought, and the price will fall back at any time, or there will be a sharp drop.
The stock price has been rising, but the trend of William curve in William indicator chart starts to fall from a high level, which is the phenomenon of top deviation. Top divergence is often a signal that the stock price will reverse at a high level, and it is a strong selling signal. The stock price has been falling, but the trend of William curve on William indicator chart starts from the low position and goes up from peak to peak, which is the phenomenon of bottom deviation. Bottom deviation is usually a signal that the stock price will reverse the low level and rise, which is a relatively strong buying signal.
The correct usage of this indicator is: when the short-term William indicator is greater than the long-term William indicator. It means that the market state belongs to a bull market; When the long-term William index is greater than the short-term William index, it means that the market belongs to a short market. Generally speaking, the accuracy of William indicator will be higher in the volatile market, while in the unilateral market, William indicator can only be used as a reference to assist other indicators in making decisions.
Key points of William's indexing skills
1, it is best to choose WR to cross the K-line point corresponding to 50.00 from the high position to lay out relevant stocks. Of course, there must be signs of a breakthrough in volume in the near future.
2. Never consider stocks related to WR50.00. If WR runs above 50.00, we will definitely not consider participating.
3. If the WR of holding the stock runs between 0 and 20.00, you can rest assured that the stock will be held up. Once it appears above 20.00, you should consider profitability.
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