There are two commonly used William indicators, W &；; R William index (William's %R) and LWR William index, which are the same as KD index. KD is a relative price index, and its mathematical expression is "the difference between the current price and the lowest price in the analysis area divided by the fluctuation range in the analysis area". The mathematical expression of William indicator is "the difference between the highest price and the current price in the analysis area divided by the fluctuation range in the analysis area". The difference between the two indicators lies in the numerator of the mathematical formula. The mathematical relationship between William index and KD index is as follows:
William indicator = 1-KD indicator
Because KD and William indicators are expressed in percentages, the waveforms of William indicators and KD indicators are completely symmetrical and upside down.
I. principle and calculation of WMS% R
Calculation formula:
H-C
N-day WMS% r =—× 100%
H-L
Among them: h-the highest price within n days;
Lowest price in l-n days;
C- final closing price.
Two points can be seen from the formula:
(1) It judges the market situation according to the ratio of the strength of the empty single market (H-c) to the total strength of the long and short market (H-L) within n days.
② It is a highly random fluctuation index, which is essentially the same as the immature stochastics RSV in KDJ theory.
Second, the application of WMS% r
1，0 ≤ WMS% r ≤ 100。 Because WMS% r mainly studies the air force, contrary to other similar oscillation indicators, WMS%R 80 is an oversold area and 20 is an oversold area. Usually, in order to adapt to the observer's visual experience, the downward direction is taken as the value-added direction on the chart interval coordinates.
2. Because of its strong randomness, if you enter the overbought area, it doesn't mean that the price will fall back immediately, as long as there are still fluctuations, it will remain strong. When it exceeds the overbought line (WMS% r = 20), it will send out a sell signal.
3. Similarly, only when it is below the oversold line (WMS% r = 80) will it send out a buy signal.
4.WMS% r = 50 is a long-short balance line, and rising or falling below this line is a trading signal for stable investors.
5. The value of n in the formula is usually 6, 12, 26, etc. , corresponding to short-term, short-term and medium-term analysis respectively.
I . W &； R William indicator (William's %R)
N: 14
(HHV (high, north)-close) /(HHV (high, north) -LLV (low, north)) * 100
Please compare RSV with the mathematical formula of RSV in KD index in Essay on Dow Rising: Stock Speculation Skills and Stock Selection Strategy 16 as follows:
N:9
RSV:=(CLOSE-LLV (low, N))/(HHV (high, N)-LLV (low, n)) *100;
Except the size of the analysis period n is different, the mathematical expression between them has the following relationship:
W & ampr William indicator =1-"RSV in KD indicator"
Please do a small experiment in W&; R adds RSV expression in KD to William indicator:
RSV:(CLOSE-LLV (low, N))/(HHV (high, N)-LLV (low, n)) *100;
Then modify W &；; There are two completely symmetrical curves in R William index.
In "Essay on Dow Rising: Stock Speculation Skills and Stock Selection Strategy XVI", it is said that "if the closing price reaches a new high within 9 days, RSV will become 100%, and if the innovation is low, it will become 0. If the relative position is directly described by RSV, RSV is easily passivated. The RSV curve takes a short time from low to high (or from high to low), but it takes a long time in the passivation area, and there are many passivation blind spots on the curve. " It is precisely because the analysis period of No.9 is too short that a longer analysis period 14 is adopted in the William indicator. By using the fact that RSV curves are easily passivated at 100% and 0%, we can find out the overbought and oversold characteristics of the market in advance.
Overbuy status: In the analysis cycle, if the stock price hits a new high and enters a higher risk area, the stock price may fall back at any time, and the RSV curve is passivated at a high level, which can be regarded as entering an overbought risk area. At this time, it is necessary to buy carefully.
Oversold state: during the analysis period, if the stock price is low in innovation and enters a lower risk zone, the stock price may rebound at any time, and the RSV curve is passivated at a low level, which can be regarded as entering an oversold risk zone. At this time, it is necessary to sell carefully.
W & ampr William indicator is mainly used to explain overbought and oversold states. Contrary to KDJ, W&; R William indicator curve more than 80% means oversold, while less than 20% means overbought.
Ii. LWR· William indicator
Mathematical expression:
N:9
M 1:3
M2:3 people
RSV:=(HHV (high, N)- closing) /(HHV (high, N)-LLV (low, n)) *100;
LWR 1:SMA(RSV，M 1， 1)；
LWR2:SMA(LWR 1，M2， 1)；
Please compare the following mathematical expressions of KD random indicators:
N:9
M 1:3
M2:3 people
RSV:=(CLOSE-LLV (low, N))/(HHV (high, N)-LLV (low, n)) *100;
K:SMA(RSV，M 1， 1)；
D:SMA(K，M2， 1)；
Comparison results: The mathematical models of LWR William index and KD index are the same, but the molecules of RSV in the two formulas are different. These two indicators are displayed in the analysis software, and the curves are completely symmetrical and upside down.
Three. abstract
1 and W & ampR's William index (William's %R) are mainly used to observe overbought and oversold in advance, and their overbought and oversold areas are just the opposite of KDJ. If the sensory curve reacts too fast in use, the analysis period can be increased.
2. The curves of 2.LWR William index and KD index are completely symmetrical and upside down. You can use the familiar KDJ curve or KD curve.
Before we understand the essence of indicators, we should use indicators carefully. The analysis ideas of some indicators are the same, but slightly different, which can be regarded as similar indicators. If we use similar indicators to analyze and judge the market when analyzing problems, it may be too biased. Only by adopting different types of indicators can we ensure that we can look at the problem from different angles.
William index, also known as William overbought and oversold index, is used to reflect the strength of the market and the trading momentum by studying the price fluctuation in a period of time and the relationship between the price and the closing price. The essence is to study the peaks and valleys of price changes and then decide the timing of buying and selling.
The formula of William index is: r% =100-100 (c-ln)/(HN-ln).
Where: C (closing price of the day), LN (lowest price of N days) and HN (highest price of N days).
1, William index is a dynamic kinetic energy index, with the swing performance of kinetic energy index, which swings from one extreme "super selling point" to the other extreme "super selling point". From the principle of simple pendulum, when the simple pendulum approaches the extreme value, there is a pause and then it moves forward along the inertia of the original trend, which will change the original trend.
2. From the calculation formula of William Index, it is very important to choose the numerical value of base period n. After the value of n is established, it represents the choice of research period. The smaller the value of n, the faster the fluctuation frequency of William index and the higher the sensitivity of grasping price changes. However, according to this, investors are easy to fall into the wrong circle of frequent operation, and the influence of accidental factors will also increase investors' judgment error on the existing market; The greater the value of n, the slower the fluctuation frequency of William index, the lower the sensitivity of price change, and the smaller the influence of accidental factors on price trend. Based on the long-term tracking of William indicator for five years and the influence of time window on the price trend, the author thinks that William indicator can choose parameters in three ways: short, medium and long, with short-term n value of 10, medium-term 20 and long-term 89. In this way, William indicator shows three William indicator lines in the charts of 5 minutes, 15 minutes, 30 minutes, 60 minutes, daily line, weekly line and monthly line, representing short, medium and long swings respectively.
3. From the calculation formula of William indicator, when the closing price of the day is equal to the lowest price of N days in the selected base period, William indicator reaches 100, that is, the extreme value of oversold selling point. Note that this is not the time to buy and sell, which only means that it is time to buy and sell. At this time, we should also consider swing inertia. In the sharp decline, the closing price of the market can hit a new low continuously, and the best "oversold" is only when the value of William indicator changes. Within the selected base period n, when the closing price of the day is equal to the highest price in n days, the William index reaches 0, that is, the "overbought point" extreme value. Note that it is not the time to buy and sell, which only means that the opportunity to buy and sell has come. At this time, we should also consider the swing inertia and see the next change. The daily line looks at the next day, the weekly line looks at the next week, and so on. The above points not only include the common sense of "no top to rise, no bottom to fall", but also include the thinking mode of "buy on dips and sell on rallies".
4. The value of William indicator is between 0- 100, usually 50 is the separated center line, 80- 100 is the oversold line, and 20-0 is the overbought line. Judging from the short, medium and long William indicator lines, when the three indicator lines merge to reach or approach 100, that is, the "oversold" extreme value or the William indicator reaches or approaches 0, that is, the numerical change of the next William indicator is the most important trading opportunity for investors.