Direct answer
A worked example of Williams %R (also written Williams %R or %R) means you start with specific, stated price inputs—such as a recent highest high, a recent lowest low, and a current close—then compute the indicator value step by step. Because there is no single “correct” future outcome, the example should focus on the mechanics and the assumptions that make the calculation reproducible.
In the example below, I will assume a fixed lookback window (commonly called the “period”) and use only made-up numbers. You can replace those inputs with your own price data and verify the result by repeating the same arithmetic.
Mechanism or definition
Williams %R is a momentum-style oscillator that reflects where the current close sits within the recent trading range.
A common formula is:
%R = -100 × ( (Highest High − Close) / (Highest High − Lowest Low) )
Where:
- Highest High is the maximum high price over the chosen lookback period.
- Lowest Low is the minimum low price over the same period.
- Close is the latest closing price used for the indicator calculation.
Two key points about mechanics:
- The output is typically expressed between −100 and 0 when Highest High is greater than Lowest Low.
- If Close is near the Highest High, Williams %R moves closer to 0; if Close is near the Lowest Low, it moves closer to −100.
Evidence or example (worked numerical scenario)
Assumptions (state everything used)
To make the calculation independently verifiable, assume:
- Lookback period: 14 bars.
- Over the last 14 bars, the Highest High is 1.1200.
- Over the last 14 bars, the Lowest Low is 1.1000.
- On the current bar, the Close is 1.1150.
- We ignore bid/ask spreads and assume the “Close” value is exactly the number used in the formula.
Step-by-step calculation
-
Compute the range denominator: Highest High − Lowest Low = 1.1200 − 1.1000 = 0.0200
-
Compute the numerator: Highest High − Close = 1.1200 − 1.1150 = 0.0050
-
Divide numerator by denominator: 0.0050 / 0.0200 = 0.25
-
Apply the scaling and sign: %R = -100 × 0.25 = -25
Interpretation that stays within the mechanics
Under these inputs, the Close (1.1150) lies about halfway to three-quarters of the way from the low toward the high within the chosen window. In indicator terms, Williams %R at −25 indicates the close is relatively nearer the top of the recent range than the bottom. This is descriptive of where price sits relative to the recent high/low, not a guarantee of any future move.
If you want to check your own calculations, pick the same three inputs (Highest High, Lowest Low, Close) and repeat the arithmetic. Any difference usually comes from using a different period, different bar data, or a different definition of which price (close vs. last traded) is fed into the formula.
Limitations and risks
1) Sensitivity to the chosen lookback period
Williams %R depends directly on Highest High and Lowest Low over the lookback window. Changing the period can change those extremes and therefore change the oscillator value even if the current Close is identical.
2) Failure mode when the range collapses
If Highest High equals Lowest Low over the period, the denominator in the formula becomes 0. Many charting platforms handle this case in their own way (for example, showing a missing value). The key risk is that the indicator cannot be computed from the formula as written when the range is zero.
3) Indicators do not provide predictive certainty
Even with a perfectly computed %R, past relationships between indicator readings and later price movement are not reliable for forecasting. Outcomes vary with market conditions, costs, execution, and jurisdictional factors affecting trading.
4) Provider and execution differences
Two platforms may compute slightly different values if they use different price fields (e.g., close definitions), different bar construction, or different handling of missing data. This affects reproducibility unless you align the inputs.
Verification or next question
To independently verify a worked example, you only need three inputs for the same period: Highest High, Lowest Low, and Close. Recalculate the numerator (Highest High − Close), the denominator (Highest High − Lowest Low), then apply %R = -100 × (numerator/denominator).