Stochastic vs Williams %R: the same idea, flipped
The stochastic and Williams %R ask the same question: where did price close inside its recent range? Once you see the shared math, choosing one gets easy.
The short answer
Both lines look at the highest high and the lowest low of the last 14 bars. Then they ask where the latest close sits in that range.
The Stochastic oscillator measures from the bottom of the range. It runs from 0 to 100 and usually adds smoothing and a second line.
Williams %R measures from the top of the range. It runs from 0 to -100, and it's one fast line with no smoothing.
Unsmoothed, they are mirror images of each other.
Side by side
| Stochastic | Williams %R | |
|---|---|---|
| Measures from | The range low | The range high |
| Scale | 0 to 100 | 0 to -100 |
| "Stretched high" line | 80 | -20 |
| "Stretched low" line | 20 | -80 |
| Lines | 2 (%K and %D, its average) | 1 |
| Smoothing | Usually yes (slow stochastic) | No |
| Usual setting | 14 bars, 3-bar smoothing | 14 bars |
| Created by | George Lane | Larry Williams |
The math, with numbers
Say the 14-bar high is 110 and the low is 100. The range is 10. The latest close is 108.
Stochastic (fast %K): (close − low) ÷ range = (108 − 100) ÷ 10 = 0.8, so it reads 80.
Williams %R: (high − close) ÷ range × -100 = (110 − 108) ÷ 10 × -100 = -20.
Same close, same range. 80 on one scale is -20 on the other. Add 100 to %R and you get the fast %K.
Stochastic: strengths and limits
The good parts:
- Smoother. Most charts show the "slow" version, which cuts some of the noise.
- Two lines. The %K and %D cross, which some traders use as a timing hint.
- Familiar scale. 0 to 100 matches RSI and most other oscillators.
The limits:
- A bit later. Smoothing costs speed.
- Still noisy. Even smoothed, it gives many signals that go nowhere.
Williams %R: strengths and limits
The good parts:
- Very quick. No smoothing, so it shows a turn the moment the close moves.
- One line. Simple to read on a phone.
The limits:
- Jumpy. It can flip from -10 to -90 in a few bars.
- The minus sign confuses people. "-20 is high" takes some getting used to.
Both get pinned in trends. In a strong uptrend, price keeps closing near the top of its range. Both lines sit in the "stretched high" zone for a long time. That says "strong", not "about to fall". See overbought and oversold.
Which fits you?
- You want fewer, calmer signals: the slow stochastic.
- You want the fastest read and can handle noise: Williams %R.
- You already use one: keep it. They tell you nearly the same thing, so having both adds clutter, not evidence.
Either way, these lines work best in a sideways market between two clear levels. Mark those levels first. See range trading explained. In a clean trend, check the bigger chart and trade with it instead. See how to identify a trend.
Common mistakes
- Treating -20 or 80 as a sell button. It only means the close is near the top of the range.
- Reading %R as a positive number. -20 is near the top. -80 is near the bottom.
- Putting both on one chart. It's the same math twice. They will "agree" almost every time.
- Tuning the setting after every loss. Pick one and judge it over many past trades. See how to backtest a trading strategy.
- No stop. The reading doesn't set your risk. Your stop does. The position size calculator turns it into a size.
Questions
Is Williams %R the same as the stochastic?
Almost. Williams %R is the fast stochastic %K flipped upside down onto a 0 to -100 scale. The stochastic most people use also adds smoothing and a second line, so the two look a little different on a chart.
What do -20 and -80 mean on Williams %R?
-20 means the close is near the top of the recent range, often called overbought. -80 means it's near the bottom, often called oversold. Neither one means price must turn.
Which is better, stochastic or Williams %R?
Neither is better everywhere. The stochastic is smoother with fewer signals. Williams %R is faster and noisier. Pick the one that fits how often you want a signal, and test it on past charts.
What is the best setting for Williams %R?
14 bars is the common default and a fine start. No setting works best on every market, so choose one and judge it over many trades.
Want the next step? We'll walk you through it.
Four free lessons by email, one every few days — each with a 10-minute exercise on a real chart.
Send Me the Free Lessons 4 short emails · No spam · Unsubscribe anytimeOr see the whole method, step by step:
See What’s Inside the Course Try everything free first. Decide when you're ready. · Open the free chart tool (works in the TradingView phone app)One chart idea a day, in plain English. Follow along: