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The Smoothed WPR indicator is a powerful VertexFx client side indicator script that provides insights into the market trend and reversal of trends.
It is based on the Williams %R indicator. The Williams %R displays the relationship of the current closing price with respect to recent N highs and lows. Unlike normal oscillators, Williams %R is a negative oscillator, in the sense that -100 represents oversold conditions and 0 represents overbought conditions. The Williams %R although very useful in identifying trend reversals produces whipsaws when there is a large deviation in the latest closing price. To avoid whipsaws and provide more reliable technique for identifying reversals the Williams %R is smoothed using a smoothing co-efficient. 
By default the smoothing co-efficient calculated as 2 / (1 + SMOOTHING PERIOD). By default the smoothing period is same as the Williams %R period. However, the user can override the default smoothing period by set the value of SMOOTH_PERIOD to the desired period.
When the value of Smoothed WPR is falling it indicates a bearish trend. When the value falls below -80 and starts reversing (or moves sideways), then oversold trend is nearing completion and the market should turn from bearish to neutral or bullish.
Similarly, when the value of Smoother WPR is rising it indicaters a bullish trend. When the value rises above -20 and starts reversing or exhibits sideways movement, then it can be inferred that the bullish market is nearing completion. It is very likely that the market will turn sideways or bearish soon after this event.

BUY / EXIT SHORT - It is recommended to enter a LONG position (or exit SHORT) when the Smoothed WPR is below -80 and starts moving sideways or upwards.

SHORT / EXIT LONG - It is recommended to enter SHORT position (or exit LONG) when the Smoother WPR is above -20 and starts moving sideways or downwards.

smoothed wpr.png

smoothed wpr.vtl

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