Thread: WilliamHistogramWallerTest – VertexFX Indicator

The WilliamHistogramWallerTest is a variant of the Larry Williams %R method and is used to find trending markets.
To calculate the indicator value, we find the Highest High and the Lowest Low of the recent 40 bars. We calculate the ratio by dividing the difference between the Highest High and the current close, by the difference between the Highest High and the Lowest Low. This value is multiplied yb 100, and scaled in the range of -50 to +50.
When the markets are rising, the difference between the Highest High and the Close increases as the market makes new Highs, whereas the difference between the Highest High and Lowest Low remains more or less constant as the we trend upwards. Hence the indicator value rises and responds quickly to rising and falling markets.
It requires atleast 40 bars of data for calculations.

BUY - Enter BUY trade when indicator value has reached negative extreme below zero and is rising for atleast two bars.
SELL - Enter SELL trade when indicator value has reached positive extreme above zero and is falling for atleast two bars.