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RE: Crypto Trading With Williams % R Indicator - SteemitCryptoAcademy S4W4- Homework post [kouba01]

in SteemitCryptoAcademy3 years ago (edited)

Hello @amar15,
Thank you for participating in the 4th Week Crypto Course in its 4th season and for your efforts to complete the suggested tasks, you deserve a Total|8.5/10 rating, according to the following scale:

OriginalityCompliance with topicConsistency of methodQuality of analysisClarity of structure & language
(1.5/2)
(2/2)
(1.5/2)
(1.5/2)
(2/2)

My review :

A good article in which you were able to answer most of the questions ably, and you have some notes that I made.

a) William %R > -80 then Oversold

  • -80 >William %R > -100 then Oversold

I believe the by default Setting of this indicator is the best which is suggested by its created after doing a lot of Research and Backtesting.

  • The period used by %R by default is 14 candles. Thus, the indicator will cover a period of 14 hours for the 1H chart and 14 weeks for the 7D chart. However, it can be changed to increase the sensitivity of the device (alternatively, to lower the number of false signals).

I would suggest you not use only Wiliam %R we need other confirmation too to jump into the trade.

  • Of course, all trends are destined to be reversed. However, the overbought/oversold levels do not tell you when to expect a reversal. Such signals can be used to confirm readings from other indicators. However, beware of false and lag signals, they are very common when trading with one indicator and without confirmations.

Senario:4- Her you can clearly see that the value of William %R is in the Oversold zone and after getting confirmation from other tools you can simply go for the Buy signal.

  • A sell signal is identified when an oscillatory failure or swing failure materializes, unlike the appearance of a buy signal which is indicated by a swing failure.

I would like to use Exponential Moving average specially 20 EMA as it moves faster than Moving average because it give priority to the recent price change.

  • An easy way to avoid running into false signals with the William Percent Range is to integrate the indicator with an Exponential Moving Average, or EMA , usually calculated on the basis of 14 periods, in order to obtain a line that adheres sufficiently to the graphic.
    In this way, the W% R will in all respects look like a SMI, a stochastic indicator, even if it has a completely different calculation method.

Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01

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Thank You Professor for the feedback 😃

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