Based on the monthly chart, the W% for NDX is sitting at 100, also very close to the lover BB. Thus we are ready to bounce. Now the W% tends to be early, so we might have a little more down, but the targetzone is definiatelly reached...
Pekelo, The williams %r was the first indicator I fell in love with ... and some 4 weeks later became the first indicator that I lost significant money with. I had watched it work for 3 weeks and taken a couple of trades. Then the market turned down again and it went to max. Then %r reversed and I entered. Then the market carried on down, and down for a few more entries before bottoming at about the time I ran out of enthusiasm Its a little like the bollinger band; it bounces off it until it doesn't - and a new trend or larger reversal is when it doesn't. So, I'm not saying that this is the time it fails you but you need a good overall strategy (like using it with the trend and having a defined trend failure/suspect state to stop) to make it work well for you. Best of luck to all of you.
Thanks for the note. What people don't seem to get on this thread, that neither BB or W% work all the time. It is the consistency of their usage that makes money, not one or two lucky random sample. So sure, occasionally it will fail, but the time when it works makes up for the failures.
Dow is up 75, the Nasdaq lagging a bit, but still up 10 points, looks like a rally to me... Should have posted under my journal...
I agree, SPX keeps bouncing off 20- SMA near the high today and the last week or so looks like a move lower with a current pause in this range. We could be moving back to 1260 in a few weeks.... Will depend if it surges from here or pulls back like a bee-ach.
I was livetrading in the chatroom the Williams with BB and after 7 trades I was up 48 points (YM) not even waiting long enough for the signals to play out. yeah, patience is a killer. The Fed minutes screwed up the show, because then the market started to trend, and I have a hard time to play breakouts but overall still ended up with 30 points... Here is the chart at the first part of the day for ES traders... Notice that at the first 4 W% signals the ES went up each time by 1.5-2 points....
Check this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=66972&perpage=6&pagenumber=1 for a similar idea: i.e. Williams%R 30 on a minute chart.