With this post I will be resuming my publications on basic elements of cryptocurrency trading, this time I will talk about how to anticipate trend changes with the Williams% R indicator.
Bearish Divergence / Williams% R Indicator
The extraordinary thing about the Williams% R Indicator is that it provides guidance on potential changes in trends and the consequent anticipation of the next trend, because it can graphically project divergences in a given market and specific time frame.
The above would apply in a bearish divergence, if while the price action is generating higher prices than the previous ones, and if the Williams% R Indicator on the contrary reveals in its scale a second maximum lower than the one that preceded it, this element may be announcing the beginning of a bearish trend, and an evident weakness among buyers.
To project the explanation of a bearish divergence with the Williams% R Indicator, observe in the following image the behavior of the VET price action in a bullish zone, and visualize how the Williams% R Indicator follows a downtrend.
Bullish Divergence / Williams% R Indicator
In those cases, when in a financial instrument we appreciate a constant loss of prices when marking new lows, and on the contrary, the Williams% R Indicator reveals in its scale an upward trend, this element may be announcing the beginning of an upward trend, and an evident weakness among sellers.
To project the explanation of a bullish divergence with the Williams% R Indicator, observe in the following image the behavior of the BTC price action in a bearish zone, and visualize how the Williams% R Indicator follows an uptrend.
SOURCES CONSULTED
Kirkpatrick C., and Dahlquist J Technical analysis : The Complete Resource for Financial Market Technicians. Link
OBSERVATION:
The cover image was designed by the author: 
, incorporating image: Source: Binance
, incorporating image: Source: Binance 
