Williams %R is another momentum indicator that highlights overbought and oversold levels. The Indicator is very similar in construction to the Stochastic however the data is raw and inverted, without any internal smoothing.
[(Highest High in n periods - Today's Close)/(Highest High in n periods - Lowest Low in n periods)] * -100
This indicator gives up raw data and as such generates a lot of signals. Levels 0-20% represent an overbought market and levels 80-100 represent an oversold market.
