Its main function is to assist other indicators to confirm signals. Its meaning is the relative position of the closing price of the day in the whole price range in the past period of time, and it is an indicator with both overbought and oversold and strong and weak boundaries.

Its uses are generally divided into:

1 consider the absolute value of WR.

2. Considering the curve shape of WR

It is worth noting that it has certain defects:

1, the response is too sensitive and the index fluctuates too fast, resulting in frequent signals and very high error rate. There are too many signals and the error rate is serious, so investors dare not use them easily.

2. Too much emphasis on short-term. After careful study, it is found that it is not an error in index design, but that too much emphasis is placed on short-term parameter setting, and some arbitrary and unscientific parameters are generally used in time parameter setting.