WR William Index (Williams Overbought/Oversold Index)

Indicator description:

WR William Index (Williams Overbought/Oversold Index) was developed by Larry Williams in 1973 It was first proposed in the book "How Imade a million index". WR is an indicator for measuring market fluctuations. It uses the principle of buying when strong and selling when weak. It is a technical indicator that analyzes the short-term buying and selling trend of the market and provides investors with a reference for trading.

Application rules:

1. When the William Index line is above 85, the market is oversold and the market is about to bottom out.

2. When the William Index line is below 15, the market is overbought and the market is about to peak.

3. Use it in conjunction with the relative strength index to give full play to their complementary functions in judging the strength of the market and the phenomenon of speculation, and you can get a more accurate judgment on the direction of the market.

4. The William Index is used in conjunction with the momentum indicator to confirm the peaks and troughs of stock prices within the stock market cycle in the same period.

5. Using the William Index as a market testing tool makes it neither easy to miss the big market trends nor easy to get stuck in high price areas. However, because this indicator is too sensitive, during the operation, it is best to combine it with relatively gentle indicators such as the relative strength index to judge.