Larry Williams developed the Percent Range oscillator in the 1970s, and it’s stuck around because it does one thing very well: it tells you where the current close sits relative to the high-low range over a chosen period — on an inverted -100 to 0 scale. Mechanically it’s almost identical to the Stochastic %K, just flipped and scaled differently.
If you already use Stochastic, Williams %R won’t add much new information. If you don’t, it’s a clean alternative with thresholds (-20 and -80) that some traders find easier to read than Stochastic’s 80/20.
What is the Williams %R Indicator?
Williams %R measures where the current close is relative to the highest high and lowest low over the lookback period. The output is always negative, ranging from 0 (closes at the period’s high) to -100 (closes at the period’s low).
Standard interpretation: above -20 is overbought (price closing near recent highs), below -80 is oversold (closing near recent lows). When %R rolls over from above -20, that’s a sell signal; rolls up from below -80, a buy signal.
Williams’s original lookback was 10 periods. MT4’s default is 14. Either works.
How Williams %R Works on MT4
On MT4, Williams %R plots in a sub-window with a single line oscillating between 0 and -100.
The two main signals are the -20 zone roll-down (overbought reversal) and the -80 zone roll-up (oversold bounce). Both work best in ranging markets where price respects the range extremes.
In trending markets, %R can stay near 0 throughout an uptrend or near -100 throughout a downtrend — the same trap as Stochastic. Pair with a trend filter (50 EMA or higher-timeframe direction) to avoid counter-trend whipsaws.
Key Features
- Built into MT4 – Insert > Indicators > Oscillators > Williams’ Percent Range
- Inverted -100/0 scale (cleaner than Stochastic for some traders)
- Single line, simpler to read than two-line oscillators
- Non-repainting once candles close
- Configurable period (default 14)
- Lightweight, runs alongside other indicators
Best Settings for Williams %R
| Parameter | Scalping (M1-M5) | Day Trading (M15-H1) | Swing Trading (H4-D1) |
|---|---|---|---|
| Period | 9 | 14 | 21 |
| Overbought Level | -10 | -20 | -20 |
| Oversold Level | -90 | -80 | -80 |
| Applied Price | Close | Close | Close |
Recommended starting point: Period 14 with -20/-80 levels on H1, paired with a 50 EMA trend filter.
Pros and Cons
| Pros | Cons |
|---|---|
| Simple single-line read, easy to interpret | Can stay near zone extremes during strong trends |
| Reliable in ranging markets at the -20 and -80 levels | Functionally similar to Stochastic, doesn’t add much if you already use it |
| Built into MT4, non-repainting | Inverted scale takes some getting used to |
| Works on any timeframe and most pairs | Not effective without higher-timeframe trend context |
How to Install Williams %R on MT4
The standard Williams %R is built into MT4. For the enhanced version see install custom indicators on MT4.
Step 1: Open MT4 and select the chart.
Step 2: Click Insert > Indicators > Oscillators > Williams’ Percent Range.
Step 3: Set Period to 14, add levels at -20 and -80 in the Levels tab, click OK.
Step 4: Save as a template if you’ll reuse the configuration.
Trading Strategy: Williams %R Reversal in Range
This is the most reliable Williams %R setup — works in ranging markets on any timeframe.
Setup: Williams %R(14) with -20/-80 levels. 200 SMA on the same chart to identify range-bound conditions (price near or oscillating around the 200 SMA = ranging).
Buy Signal:
1. Price is in a range (not trending strongly above or below 200 SMA)
2. Williams %R drops below -80
3. %R crosses back up through -80
4. Enter long when the next candle closes higher
Sell Signal:
1. Price is in a range
2. Williams %R rises above -20
3. %R crosses back down through -20
4. Enter short when the next candle closes lower
Stop Loss: Beyond the recent swing extreme.
Take Profit: Range midpoint or the opposite range extreme.
The “wait for the cross back through” rule is what filters out the false signals — if you enter as soon as %R hits -80, you’ll get caught in the strongest moves where %R stays pinned.
Frequently Asked Questions
Is Williams %R free?
Yes. Built into MT4 and the enhanced version below is free.
Does Williams %R repaint?
No. Locks in once the candle closes.
What is the difference between Williams %R and Stochastic?
They measure the same thing (close position within range) on different scales. Williams %R uses -100/0; Stochastic uses 0/100. Stochastic adds a signal line (%D) and slowing parameter; Williams %R is just a single line.
What timeframe works best?
H1 and H4 in ranging markets. Avoid using as your sole signal during strong trends.
Can I use it on MT5?
Yes. Built into MT5 with identical behaviour.
Download Enhanced Williams %R for MT4 – Free
The standard Williams %R works fine but the enhanced version adds:
- Multi-timeframe display – H4 and D1 readings on your H1 chart
- Zone alerts – popup, email, push when %R crosses -20 or -80
- Coloured fill – background highlight in extreme zones
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 12 KB
Version: 2.1
Last updated: April 2026
Download the Williams %R Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Williams %R Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Williams %R Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact reversal entry rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the Williams %R Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Williams %R Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Williams %R Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.3/5
| Category | Rating |
|---|---|
| Accuracy | 4.2/5 |
| Ease of Use | 4.6/5 |
| Features | 4.1/5 |
| Value | 4.5/5 |
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- Stochastic Oscillator MT4 – The two-line cousin of Williams %R
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- CCI Indicator MT4 – Unbounded momentum oscillator with breakout signals
- Best Oscillator Indicators for MT4
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