Category: Money Tips Date: 2007-01-12
Yes LARRY WILLIAM published in 1973.
Formerly known as "William's overbought indicators", referred to as "WMS% R", or "% R".
The formula is:
First, to determine the cycle times, the number of days is the sale of half of the cycle. In Europe and the United States, technical analysis experts believe that the sale of a cycle of 28
. However, excluding Saturday and Sunday, the actual transaction on the 20th. While a longer cycle of 56 trading days, trading days for 40 days. And therefore% R in front of the cycle to take 20 to 40 days half.
That the use of 10% R, or 20% R, there is also a smaller cycle, the number of days, such as 5% R person.
With 10% R as an example:
C10-L10
WMS% R =-------------------× 100%
H10-L10
H10: 10 days, the highest price L10: 10 days Low C10: Chapter 10 Application of the closing price rule:
The% R values calculated the same as with the RSI is between 0-100. Its function as follows:
1, when the "% R" less than 20, that is oversold, and the prices will soon hit the bottom, 20 in this horizontal line, called "buy-line."
2, when the "% R" is higher than 80, that is overbought, and the prices will soon peak, and 80 of this horizontal line, called "sell-line."
3, when the "% R" upwards from the oversold area, but said the trend Quotes shift, if the break 50 in the axis, that is, turning strong rally, you can buy.
4, when the "% R" from the overbought zone sliding below 50 in the axis, can confirm that a stronger decline should be sold.
5, when the "% R" into the overbought zone, and said that stocks would fall immediately, in the overbought zone fluctuations, but said the price is still a strong market information in the. Until% R back below the "sell line" when is the sell signal. And vice versa.
Edited in the gold-line
