WilliamPercentR Chart, Label For ThinkOrSwim

[MerryDay]

The Williams PercentR is a forward-looking indicator.
ToS provides the following description:

The Williams Percent R is a lower study. It is a momentum indicator that is designed to identify overbought and oversold areas in a non-trending market. The Williams Percent R can be interpreted similarly to the Stochastic oscillators but the Williams Percent R is simply plotted upside-down. Readings in the range of -80 to -100% may indicate that the security is oversold while readings in the 0 to -20% range suggest that it is overbought.​

Advantages of Williams %R
Simple to use

• This is a forward-looking indicator with no lag!
• The formula is straightforward, making it accessible for new traders.
• Precise levels
• Provides clear overbought and oversold levels, making it easy to interpret.
• Can be used for trend identification, divergence, and convergence analysis.
• Volatile price sensitivity
• Useful for determining if prices are maintaining bullish or bearish momentum.

Disadvantages of Williams %R
While profitable in trending markets, this study and all oscillators perform poorly in non-trends.

• False signals: Can generate false signals, especially in volatile or choppy markets.
• Ranging markets: May provide less reliable signals in ranging markets.

Tips for using Williams %R

• when using on shorter timeframes: Use volume, chart patterns, breakouts and other price action indicators to confirm or refute signals.
• A 3-day SMA has been added as a signal line.
• Overbought readings can actually help confirm an uptrend.

There are three important confluences to observe when analyzing oscillator charts:
https://usethinkscript.com/threads/how-to-read-an-oscillator-in-thinkorswim.11497/

This code has been updated to accommodate the suggestions from the posts below.

## #######################################################
# Williams PercentR
## #######################################################
# TD Ameritrade IP Company, Inc. (c) 2007-2024
#
input length = 10;
input overBought = -20;
input overSold = -80;

def hh = Highest(high, length);
def ll = Lowest(low, length);
def result = if hh == ll then -100 else (hh - close) / (hh - ll) * (-100);
def WR = if result > 0 then 0 else result;
def WRavg = average(WR,3);

## #######################################################
# Charting & Formatting

declare lower ;
declare real_size;

plot pWR = if result > 0 then 0 else result;
pWR.SetDefaultColor(GetColor(1));

plot pWRavg = WRavg;
pWRavg.SetLineWeight(3);
pWRavg.AssignValueColor(
if WR > -20 then color.green else
if WR>WRavg then color.green else color.red);
AddCloud(WR, WRavg, color.green, color.red);


plot Over_Sold = overSold;
Over_Sold.SetDefaultColor(GetColor(8));

plot Over_Bought = overBought;
Over_Bought.SetDefaultColor(GetColor(8));

AddCloud(wr,overbought, color.green, color.gray);
AddCloud(wr, oversold, color.gray, color.red);
plot midline = -50 ;

AddLabel(yes,
if WR >= 50 then "Will%>50" else "Will%<50",
if WR > 50 then color.green else color.red);

 

[CDBSI]

Does anyone have a label for the WilliamsPercentR
Green if -50 to 0
Red if -51 to -100

 

[MerryDay]

Does anyone have a label for the WilliamsPercentR
Green if -50 to 0
Red if -51 to -100

AddLabel(yes,
if WilliamsPercentR() >= 50 then  "Will%>50" else "Will%<50",
if WilliamsPercentR() > 50 then color.green else color.red);

 

[5rings]

AddLabel(yes,
if WilliamsPercentR() >= 50 then  "Will%>50" else "Will%<50",
if WilliamsPercentR() > 50 then color.green else color.red);

Can you add a mid line?

 

[MerryDay]

Can you add a mid line?

A midline has been added to the 1st post of this thread:
https://usethinkscript.com/threads/williampercentr-chart-label-for-thinkorswim.8907/#post-82376