Does the Williams percent R indicator actually work for range trading? We test this strategy to see if it holds up.
This video evaluates a specific trading strategy by combining the Williams percent R with the ADX indicator to filter market conditions. We examine the performance of sell signals triggered when the percent R drops below -20 while the ADX remains under 20.
By applying a strict stop loss of 1.5 ATR and a 2R target, we analyze the quantitative results of this technical analysis setup. While the data shows a 29% win rate during ranges, our backtesting reveals that the strategy performs significantly better in trending markets.
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