Rules by Larry Williams’ Percent Range Indicator

Larry Williams defines the following trading rules for his %R: 

• Buy when %R reaches 100%, and five trading days have passed since 100% was last reached, and after which the %R again falls below 85/95%. 

• Sell when %R reaches 0%, and five trading days have passed since 0% was last reached, and after which the Williams %R again rises to about 15/5%.

The %R works best in trending markets. Use divergence between the %R and the market to have hint of the market's condition.