How It Trades
- Compute Williams %R over 14 bars: 0 when the close equals the window's highest high, −100 when it equals the lowest low.
- Buy when %R climbs back above −80: price was sitting in the bottom fifth of its recent range and has begun to lift out of it. Waiting for the crossing rather than buying at −80 avoids catching a market still falling.
- Sell when %R pushes up through −20, the top fifth of the range.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// Williams R — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("Williams R", overlay=false,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
percentR = ta.wpr(14)
enterNow = percentR[1] <= -80 and percentR > -80
exitNow = percentR[1] <= -20 and percentR > -20
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(percentR, "Williams %R 14", color=#4d8dff)
hline(-80, "Oversold -80", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)
hline(-20, "Overbought -20", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)