I would like to share how to use W% and RSI in this post.
Well for me I usually use W%, I think it is really reliable. However, you sure need other indicator, chart pattern and price action to justify the movement.
W%
It is created by Larry William, one of a great trader that i know. Williams' %R is an effective momentum indicator that measures overbought/oversold levels.
It ranges between 0% and 100% .
The 0% indicating overbought and
100% - the oversold stocks.
W%R measures the closing price in relation to the recent low/high range.
I usually use the upper limit and lower limit at -25% and -75% respectively. When the signal head above -75%, it mean a buy signal, while if the signal head below -75% is mean a sell signal.
RSI is almost the same as the W%, but the 0% indicate oversold and the 100% indicate overbought.
