Settings of Metatrader Williams Percent Range trading strategy system

The Williams Percent Range indicator is strange in its skill to indicate a turnaround 1 or 2 periods in advance of reality. Normally the traders utilize this %R to evaluate the Overbought, Oversold conditions and to find out the market trend reversals.
The traders mainly focus on High points and low points, as they are the major key reference points in this WP Range. Like with the other indicators, this indicator is never cent percent true, in the presented signals. Yet the stableness of the signals gives the traders an edge. Ability in decoding and understanding this indicator will be developed eventually only. The below example, is an illustration of a Typical trading system founded on these indicators alert and signals:
The beneath trading strategy is for instructional purpose only. The analysis takes the past price behavior and tries to anticipate the future prices, still, it is true that, the past outcomes are in no way a guarantee for the forthcoming performances. With that criterion in mind, we can say that in the chart, the Green circles show the best possible entrance and exit points of the trading strategy. By means of the Williams Percent Range evaluation along with the extra SMA – notice the overturned slope styles of SMA while the verification details for %R trading indicators are produced.
A Typical trading system must therefore:
1. Evaluate your entry way after “Blue” %R range over cross the lower excessive value and after “Red” range SMA flattens just before modifying the direction;
2. For above 2%-3% of the account, buy order will be executed.
3. Put stop loss order of 20 pips over your entry point
4. Establish your exit range, subsequent to Blue % R line mount above the extreme higher value and subsequently Red line SMS flattens before modifying the direction
The second and third steps denote the involved risk and cash management theory one has to employ. The typical trading system will give out a gain able trade of 120 pips, however do note that previous outcomes will not guarantee about the forth comings. Yet, if your aim is stable, eventually this Technical analysis offer you an edge.