Last updated: 8 October 2026. Every screenshot below was recorded on 8 October 2026 on an IQ Option Practice account registered in Brazil, on EUR/USD 5-minute candles; the Chart analysis picture in Step 1 was recorded on 5 October 2026. We placed no real-money trade. The settings come from the platform’s dialog, and the calculation was checked by reading the line off the panel and comparing it with %R computed from the highs and lows of 14 candles. The tested box shows what the rule, a buy when the line crosses back over −80 and a sell when it crosses back under −20, with a trade of 30 minutes on 5-minute candles, did on EUR/USD candles recorded between 29 September and 5 October 2026; it says nothing about what will happen next.
Williams %R shows where the latest close lies inside the highest-to-lowest range of the last n candles, on a scale from 0 at the top of the range to −100 at the bottom. On IQ Option it opens in its own panel under the price chart as one line between 0 and −100, with a period of 14, an upper line at −20 (overbought) and a lower line at −80 (oversold) and a purple band between them. The rule sells when the line crosses back under −20 and buys when it crosses back over −80, with a trade of 30 minutes on 5-minute candles. On 5-minute EUR/USD candles that gave 183 signals, 101 Higher and 82 Lower, and the 30-minute trades won 96 and lost 87, 52.5%, below the break-even rate of 54.1% at an 85% payout.
Quick answer
- What it plots: one line from 0 to −100 in a panel under the price chart, with a purple band between the level lines at −20 and −80.
- Formula: %R = 100 × (close − highest high of n candles) ÷ (highest high − lowest low of n candles). The default n is 14.
- Settings on the platform: the Period (14), the Lower line (−80), the Upper line (−20) and the Source (Candle closing).
- Reading: above −20 the close is near the top of its range (overbought), below −80 near the bottom (oversold); the rule sells when the line crosses back under −20 and buys when it crosses back over −80.
- Where: the Momentum list of the Chart analysis panel, where it is called Williams’ Percent Range; search for Williams.
- Tested: the rule gave 183 signals and won 52.5% of the decided trades with its 30-minute trade, 52.2% with a 15-minute trade and 47.8% with a 5-minute trade. Break-even is 54.1% at an 85% payout, and a few days of one pair prove nothing.
How do you add the Williams %R on IQ Option?
Set the chart
Choose the asset, the chart type and the candle size first: the indicator is calculated from the candles on the chart. The examples in this guide use 5-minute candles on EUR/USD. These steps use the web traderoom on a Practice balance, and the numbers in each screenshot match the numbers in the text. If you do not have an account yet, see how to register.
Step 1: Open Chart analysis
Click the indicators button (1), the wave icon in the chart toolbar at the bottom left of the chart. The Chart analysis panel opens with the tabs Indicators, Templates, Widgets and Scripts. Stay on Indicators.
Step 2: Find Williams %R
Type “Williams” in the Search for indicators box (1), or open the Momentum list, and click Williams’ Percent Range (2).
Step 3: Check the settings
The dialog has the tabs Basic settings (1) and Colors and display. The Period (2) opens at 14, the number of candles in the range. The Lower line (3) opens at −80, the level below which the market is called oversold. The Upper line (4) opens at −20, the level above which it calls the market overbought. The Source (5) opens at Candle closing, the price used for the close.
Step 4: Check the colours and click Apply
Open the Colors and display tab (1). The tab has three rows, each with a checkbox that shows or hides it: Main line (light green by default) and Range Lines (grey), each with a colour box and a line-style box, and Range Color – Range Color (purple), the fill between the two level lines. All the rows are in box 2. Click Apply (3).
Step 5: Read the panel
The line is drawn in its own panel under the price chart. The title bar of the panel reads %R (14), the short name and the period, followed by the settings, eye and close icons (1). The scale at the right edge shows 0, −20, −50 and −80, with a thin line at each; the purple band fills the space between −20 and −80. The %R is the light-green line (2); where it runs over the band it looks blue.
How is the Williams %R calculated?
The indicator finds the highest high and the lowest low of the last n candles (the Period, 14), the current candle included, and computes %R = 100 × (close − highest high) ÷ (highest high − lowest low). We checked it on the panel: the line read off the chart at 130 points of two windows agrees with this formula to 0.6 on average on the scale of 0 to −100, and does not agree with a version that uses the closes only. It is 0 when the close is at the highest high of the window, −100 when it is at the lowest low, and −50 in the middle. The line is therefore the raw %K of the Stochastic Oscillator shifted down by 100, without smoothing. The indicator is credited to Larry Williams.
| Part | Default | What it does |
|---|---|---|
| Period | 14 | Number of candles in the range |
| Lower line | −80 | The lower level line |
| Upper line | −20 | The upper level line |
| Source | Candle closing | The price used for the close |
The setup text says that the upper line should be adjusted to −80 and the lower line to −20, which reverses the two names; on the platform the dialog already opens with the Upper line at −20 and the Lower line at −80.
How do you read the Williams %R?
The %R is a momentum indicator between 0 and −100 that shows when an asset is overbought or oversold: overbought when the line is above −20 and oversold when it is below −80. The rule is simple: when the line crosses under −20, the bears are taking over and a downtrend is imminent, so open a sell trade; when it crosses over −80, the bulls are taking over, so enter a buy. On 5-minute candles the trade lasts 30 minutes. The %R is often compared with the RSI, which has a range of 0 to 100 and levels such as 70 or 80 and 30 or 20; false signals in a sideways market and weak results without confirmation are the limits of the rule.
What did it look like on 5-minute candles?
We replayed the library script on EUR/USD 5-minute candles recorded from the Practice traderoom: 1,093 candles from 29 September 2026 (01:55 UTC) to 2 October (20:55 UTC) and 241 from 4 October (21:00 UTC) to 5 October (17:00 UTC). With the default period the line has a value from the 14th candle of each stretch, 1,308 values in all.
- Zones: at or above −20 on 265 candles (20%) and at or below −80 on 374 (29%); the line reached 0 and −100.
- Leaving the zones: the line fell back under −20 82 times and rose back over −80 103 times.
Two stills of the platform, window A (the Step 5 picture shows its two ends) and window B (not pictured), agree with the replay. In window A, 29 September from 06:05 to 11:50 on the platform clock, the line starts near the bottom at −98.4 (06:10), reaches 0.0 at 07:30 and falls back under −20 at 07:35, reaches −0.7 at 09:05 and falls back under −20 at 09:10, makes its lowest value, −99.2, at 10:35 and ends at −75.0 at 11:50. In window B, from 11:19 to 17:03, it starts at −76.5 (11:20), makes −100.0 at 12:05, reaches −0.4 at 15:40 and ends at −58.9 at 17:00. (A point is drawn at the close of its candle: the value of the candle that opened at 07:25 sits at the 07:30 mark.)
The −20 and −80 rule, tested
We wrote the rule as an exact condition on closed candles: Lower on the candle where the %R falls back below −20 after being at or above it, and Higher on the candle where it rises back above −80 after being at or below it, with the option opened at the close of that candle. The rule’s own trade is 30 minutes on 5-minute candles, six candles; the box also shows 15 minutes and 5 minutes.
Tested on IQ Option: the Williams %R −20/−80 rule, EUR/USD 5-minute candles of 29 September to 5 October 2026
| Asset and candles | EUR/USD binary (regular, not OTC): 1,334 five-minute candles (2026-09-29 01:55 to 2026-10-02 20:55 UTC and 2026-10-04 21:00 to 2026-10-05 17:00 UTC). The candles were recorded from IQ Option’s Practice traderoom. The replay places no orders; it only scores the rule on those closed candles, at an 85% payout. |
|---|---|
| Rule tested | The rule on closed candles, the option opening at the close of the signal candle: Lower on the candle where the %R falls back below −20 after being at or above it, Higher on the candle where it rises back above −80 after being at or below it. The rule’s own trade is 30 minutes on 5-minute candles (six candles); the box also shows 15 minutes and 5 minutes. |
| Signals | %R(14) leaves the -20/-80 zones, 5-minute candles, 30-minute trade: 183 signals (101 Higher, 82 Lower) same, 15-minute trade: 183 signals (101 Higher, 82 Lower) same, 5-minute trade: 184 signals (102 Higher, 82 Lower) |
| Outcomes | %R(14) leaves the -20/-80 zones, 5-minute candles, 30-minute trade: 96 won, 87 lost, 0 tied; 52.5% of the 183 decided trades won; net −$0.03 per $1 staked at 85% (+$0.00 at 91%) same, 15-minute trade: 95 won, 87 lost, 1 tied; 52.2% of the 182 decided trades won; net −$0.03 per $1 staked at 85% (−$0.00 at 91%) same, 5-minute trade: 87 won, 95 lost, 2 tied; 47.8% of the 182 decided trades won; net −$0.11 per $1 staked at 85% (−$0.09 at 91%) |
| Break-even | At an 85% payout a trade needs to win more than 54.1% of its decided trades to break even (1 ÷ 1.85); at 91%, more than 52.4% (1 ÷ 1.91). |
A replay is only a look back at candles recorded on the dates above: it placed no real orders, covers about four and a half days of one pair, and counts overlapping trades as if they were independent. A short test proves nothing about the future, and no profit and no win rate is promised here. IQ Option’s own blog on backtesting says that most strategies need dozens, and often hundreds, of trades before a result means anything.
With the rule’s own trade of 30 minutes (six candles) the rule gave 183 signals and won 96 of the 183 decided trades (52.5%); with a trade of 15 minutes it won 95 of 182 (52.2%, one tie), and with a trade of 5 minutes 87 of 182 (47.8%, two ties; 184 signals). Break-even is 54.1% at an 85% payout, and all three results are below it; the 95% intervals of the two longer trades include it, so only the 5-minute trade is clearly under.
Pros and Cons of the Williams %R
| Pros | Cons |
|---|---|
| One line with two clear levels, easy to read. | The line was beyond a level on 49% of the candles, so entering on the way back gives many signals. |
| Reacts at once: no smoothing. | The price can stay beyond a level for a long time; false signals are the usual limit in a sideways market. |
| A complete rule with an entry and an expiry. | The rule won 52.5% at its own 30-minute expiry, below the break-even rate. |
Common mistakes
- Reading −20 as a sell by itself. The rule sells when the line crosses back under −20, not when it reaches it.
- Swapping the two level names. The setup text says the upper line is −80; on the platform the Upper line is −20 (overbought) and the Lower line −80 (oversold).
- Using the 5-minute expiry of a 30-minute rule. The rule gives a trade of 30 minutes; the shorter expiries did worse in our test.
- Trading it in a sideways market. It is the usual source of false signals.
Related guides
- Stochastic on IQ Option and RSI on IQ Option
- Three popular oscillators and Linear Regression Slope
- Overbought and oversold markets and trading a ranging market
- All indicator guides and all strategy guides
Frequently Asked Questions
Q: What is the Williams %R?
A: An oscillator from 0 to −100 that shows where the close lies inside the highest-to-lowest range of the last n candles. It is credited to Larry Williams.
Q: What settings does the Williams %R have on IQ Option?
A: Four: the Period (14), the Lower line (−80), the Upper line (−20) and the Source (Candle closing); the colours of the line, of the grey range lines and of the purple band can be changed on the Colors and display tab.
Q: What do −20 and −80 mean?
A: Above −20 the close is near the top of its range, called overbought, and below −80 near the bottom, called oversold. The rule sells when the line crosses back under −20 and buys when it crosses back over −80.
Q: How long should the trade last?
A: The rule gives 30 minutes on 5-minute candles. In our replay 30 minutes won 52.5%, 15 minutes 52.2% and 5 minutes 47.8% of the decided trades.
Q: How is it different from the Stochastic Oscillator?
A: It measures the same position of the close inside the highest-to-lowest range as the raw %K of the Stochastic, but on a scale of 0 to −100 instead of 0 to 100, and the Williams %R line has no smoothing, so it reacts faster and crosses its levels more often.
Q: Can I use the Williams %R on binary options?
A: The platform draws it on any chart. Whether a rule works is something to test on the Practice balance with the expiry you plan to use.
