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Course Instructor:
Price Headley, CFA, CMT
Technical Analysis Indicators
William’s Percent R
Rules, Scans, Adding Filters, Breakout, Retest,
and Application across MTFs
BIGTRENDS
BigTrends Coaching
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BIGTRENDS
Coaching Schedule
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Focused Courses with Defined Goals
Moving Averages & Drawing Support/Resistance Lines
William’s Percent R
Acceleration Bands
DMI, ADX, & DMI Difference
Efficiency Ratio
1
2
3
4
5
Commodity Channel Index (CCI)
MACD & Momentum Divergence
Stochastics & RSI
6
7
8
9
10
Force Index
Options Charts
Indicator
Indicator
Indicator
Indicator
Indicator
Indicator
Indicator
Options Selection
Indicator
Indicator
BIGTRENDS
Williams %R
%R is similar to Stochastics in measuring overbought & oversold levels
The traditional scale is from 0 down to -100
While most use a 10 or 14 bar setting, I use a 30-bar setting
It is smoother but still responsive
MY GOAL:
To find the Strongest Trends (Up or Down)
Avoid the noise within a trading range
Focus on top (or bottom) 20 percentiles
Avoiding the middle 60 percentiles (20 to 80)
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BIGTRENDS
Percent R
BULL CONFIRMATION:
Look for “overbought” reading above -20 (at -19.50 or higher)
Followed by a close above that bar’s high, within the next 5 bars after Setup
This is the Initial Breakout point.
The bar when we get the initial overbought reading is what I call the Setup Bar.
Bull Confirmation
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BIGTRENDS
Percent R
BULL RETEST: Once trend is Bull Confirmed
Look for a move below the “overbought” reading under -20
(at -20.50 or less)
Use this bar’s Low as the new Closing Stop
This is the best Low-Risk Entry Point to get a Full Position for a bull trade.
If you’re not already in, or
If you’re only in a Half Position
Bull Retest
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BIGTRENDS
Percent R
BEAR CONFIRMATION:
Look for “over-sold” reading below -80 (at -80.50 or higher)
Followed by a close below that bar’s low, within the next 5 bars after Setup
This is the Initial Breakdown point.
The bar when we get the initial oversold reading is what I call the Setup Bar.
Bear Confirmation
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BIGTRENDS
Percent R
BEAR RETEST: Once trend is Bear Confirmed
Look for a move above the “oversold” reading over -80
(at -79.50 or higher)
Use this bar’s High as the new Closing Stop
This is the best Low-Risk Entry Point to get a Full Position for a bear trade.
If you’re not already in, or
If you’re only in a Half Position
Bear Retest
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BIGTRENDS
Williams %R: Trading the Extremes to Find the Major Trends
Williams %R is similar to Stochastics in
measuring overbought & oversold levels – the
traditional scale is from 0 down to -100 … While
most use a 10 or 14 bar setting, I use a 30-bar
setting – smoother but still responsive
MY GOAL: To find the Strongest Trends (Up or
Down) and avoid the noise within a trading
range
Focus on top (or bottom) 20 percentiles, while
avoiding the middle 60 percentiles (20 to 80)
Page 9
BIGTRENDS
Williams %R: BULL CONFIRMATION
BULL CONFIRMATION: Look for “overbought” reading above -20 (at -19.50
or higher), followed by a close above that bar’s high, within the next 5 bars
after Setup
This is the Initial Breakout point. The first bar when we get the initial
overbought reading is what I call the Setup Bar.
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BIGTRENDS
Williams %R: BULL RETEST
BULL RETEST: Once trend is Bull Confirmed, look for a move below the
“overbought” reading, under -20 (at -20.50 or less), and use this bar’s Low
as the new Closing Stop
If you’re not already in, or only in a Half Position, this is the best Low-Risk
Entry Point to get a Full Position for a bull trade.
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BIGTRENDS
Do You Have
Any Questions?
Contact us at
Williams %R: MA Overbought = BULLISH
BIGTRENDS
Williams %R: BEAR CONFIRMATION
BEAR CONFIRMATION:
Look for “oversold” reading below -80 (at -80.50 or higher), followed by
a close below that bar’s low, within the next 5 bars after Setup
This is the Initial Breakdown point. The first bar when we get the initial
oversold reading is what I call the Setup Bar.
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BIGTRENDS
Williams %R: BEAR RETEST
BEAR RETEST: Once trend is Bear Confirmed, look for a move above the
“oversold” reading, over -80 (at -79.50 or higher), and use this bar’s High as
the new Closing Stop
If you’re not already in, or only in a Half Position, this is the best Low-Risk
Entry Point to get a Full Position for a bear trade.
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BIGTRENDS
Do You Have
Any Questions?
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Williams %R: BSC Oversold = BEARISH
BIGTRENDS
Williams %R: The “Bend But Don’t Break” Retest
Often the best signals appear to just go below the retest level for 1 bar, then
“Flip” back above the Retest low (for bull trades) or below the Retest high (for
Bear trades)
While the risk can possibly be a bit higher on these trades (since you’re using
the same stop), it can weed out some of the bad trades too
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BIGTRENDS
Do You Have
Any Questions?
Contact us at
Williams %R: Bend But Don’t Break BJS Bull
BIGTRENDS
Do You Have
Any Questions?
Contact us at
Williams %R: Bend But Don’t Break GOOG Bear
BIGTRENDS
Williams %R: Trading the Extremes to Find the Major Trends
What do we most WANT?
MY GOAL: To find the Strongest Trends (Up or Down) and avoid the noise
Can certain profiles help us find
the BEST MOVERS?
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BIGTRENDS
Williams %R: 50 Level Tests at MidPoint of Trend
For Example, look at Daily Retests on SPY
Then I look at 60 min & 15 min to fine tune
The 50 level is more of a range bound tool, but can be useful if your
broader time frame is clearly bullish or bearish, and the shorter time
frame bounce to 50 is likely to be Noise…so fade that intraday bounce if
longer indicators are bearish (or buy the dip if bullish).
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BIGTRENDS
Williams %R: The “Bend But Don’t Break” Retest
Often the best signals appear to just go below the retest level for 1
bar, then “Flip” back into the overbought or oversold territory
While the risk is a bit higher on these trades (since you’re using the
same stop), it can weed out some of the bad trades too
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BIGTRENDS
Williams %R: The Retest with EMA Still intact
I noticed some intraday Retests that will hold at their 5-bar
Exponential Moving Average (EMA) at the close, without the EMA
reversing direction
These are often even more effective, just requires watching the
final 5-15 minutes each day to see if the EMA held or rolled over
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BIGTRENDS
Williams %R: Which Filters to Use Next on Scans?
After Percent R, I give the following weight:
1) Efficiency Ratio
2) Acceleration Bands
3) DMI Difference
And also, keep in mind the market environment, especially when
broad-based indexes are going into Bull or Bear Confirmed or
Retest mode
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