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Williams Percent Range and Moving Averages are trading indicators that are not missing in the trading kit of the world's most skilled and experienced traders.
Not only are these trading indicators a real gem in themselves, but when combined together and set up well, the resulting success rate can even double.
Strategy entry rules
Entering long positions
- Williams Percent Range (WPI) crosses the -50 threshold from bottom to top
- Price passes through the moving average to the upside
Entry into short positions
- Williams Percent Range (WPI) crosses the -50 line from top to bottom
- Price passes through the moving average downwards
Using the strategy
The combination of the Moving Average and the Williams Percent Range (WPI) is one of the strategies where it is important that the indicators meet a certain condition at any given time. In this case, the idea is that when the price passes through the moving average (no matter the direction), the WPI indicator also passes through the -50 value (see below). Below you can see some of the highlighted moving average hits, where in some there would have been entries where the above condition was met (green vertical lines - points 1,3,5,6) and conversely in two cases there would not have been entries because when price passed through the MA there was no simultaneous passage in the same direction for the WPI through the -50 level (red vertical lines - points 2,4). StopLoss and TakeProfit limit orders are handled here in such a way that exits from positions occur whenever price hits the moving average again.
The Williams Percent Range together with the moving average form a unique pair with which it is possible to achieve an impressive success rate in the range of 70-80%, which would be difficult to achieve without this unique combination.
