Basic considerations to be taken into account when using the Williams% R Indicator

With this publication I close the contributions on the Williams% R Indicator, as I have already mentioned in the previous three entries the Williams% R Indicator is a good indicator to detect areas of accumulation that lead to a change in market direction or trend, so it can be combined with other technical indicators to facilitate a better way to successfully execute operational movements of buying and selling that carry less risk of loss.

The use of the Williams% R Indicator, prescribes importance in increasing the probability of success in trading operations, therefore, adding this tool in trading strategies improves the economic performance of traders or investors.

Basically because the Williams% R Indicator's statistical prediction model makes it easy to determine accumulation sideways zones, distribution sideways zones, moments where the price action is overbought or oversold, and zones of probable trend reversal.

Within any trading strategy, the Williams% R Indicator can be incorporated as a technical tool to detect trend failure oscillations and their probable reversal, an element that facilitates a better orientation of the development of the market trend and the price action.

Another very important element provided by the Williams% R Indicator is that it serves as a technical tool to establish entry or exit points and anticipate the next trend, because it can graphically project divergences in a specific market and time frame.

Using the Williams% R Indicator with other indicators is extremely vital, because it allows to reduce the bias when analyzing a certain behavior of a financial instrument, since by combining it with other technical indicators, false signals can be filtered out.

SOURCES CONSULTED

Kirkpatrick C., and Dahlquist J Technical analysis: The Complete Resource for Financial Market Technicians. Link

OBSERVATION:

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