The general research criteria of the W%R indicator are mainly developed around the value of W%R, the shape of the W%R curve and so on.

The size of the W%R value

Like the KDJ indicator, the value range of W%R is 0-100. The difference is that the W%R indicator has 0 at the top and 100 at the bottom.

  1. When W%R is in the range of 20-0, it is the overbought zone of the W%R indicator, indicating that the market is in an overbought state, and the foreign exchange market price has entered the top, and may be considered for sale. The horizontal line W%R=20 is generally regarded as a sell line.
  2. When W%R enters the 80-100 range, it is the oversold area of ​​the W%R indicator, indicating that the market is in an oversold state, and the currency price is near the bottom, and you can consider buying. The horizontal line W%R=80 is generally regarded as a buying line.
  3. When W%R is in the range of 20-80, it indicates that the market’s long and short positions have temporarily reached a balance, and the foreign exchange market price is in a sideways sorting. You can consider holding positions or holding currencies to wait and see.
  4. In actual combat, when the William curve breaks through the 20 overbought line and enters the overbought zone, it indicates that the exchange rate has entered a strong pull up market. This is to remind investors to pay close attention to the future trend of the market, only when W%R When the curve breaks down to the 20th line again, it provides an early warning for investors and provides a reference for investors to buy and sell. Similarly, when the William curve breaks through the 80 oversold line and enters the oversold zone, it indicates that the strong decline in the exchange rate has been eased. This is also a reminder for investors to prepare for opening positions, and only when the W%R curve breaks through 80 again. Investors will only buy in the short-term.

The shape of the W%R curve

  1. When the W%R curve starts to climb upwards from the oversold area and exceeds the buying line of 80, it means that the market may break upwards, which is a signal to start buying.
  2. When the W%R curve starts to fall downward from the overbought zone and falls below the 20 sell line, it indicates that the market may reverse downwards, which is a signal to start selling.
  3. When the W%R curve breaks through the long and short balance line 50 from the oversold area, it indicates that the stock price has a strong upward trend, and short-term overweight buying may be considered.
  4. When the W%R curve breaks through the long and short balance line 50 from the overbought zone, it means that the exchange rate has fallen strongly, and short-term overweight can be considered for selling.