WR-Top Dip signals

This script is a technical analysis tool for stocks that calculates the Williams %R (WR) indicator and displays tops and bottoms signals on the chart. The WR indicator is an oscillator that measures the momentum of the stock's price movement over a certain period of time. It is based on the highest and lowest prices over a certain period of time and is expressed as a percentage of the difference between the current price and the highest price (or lowest price) over that period. The WR indicator ranges from 0 to -100, with 0 indicating that the stock is oversold and -100 indicating that the stock is overbought.

The script provides default parameters of WR1:84 and WR2:168, which are suitable for most traders. However, you can modify the parameters according to your needs, such as WR1:55 and WR2:144. The WR1 parameter is the number of periods used to calculate the first WR line, and the WR2 parameter is the number of periods used to calculate the second WR line. The two lines are then plotted on the chart, and their crossing generates the tops and bottoms signals.

The tops and bottoms signals are determined by the crossing of two different time periods of the WR indicator. When the shorter-term WR line (WR1) crosses below the upper limit (usually set at -20), and the longer-term WR line (WR2) does not cross below the upper limit, a tops signal is generated. This indicates that the stock is overbought and may be a good time to sell. Conversely, when the shorter-term WR line (WR1) crosses above the lower limit (usually set at -80), and the longer-term WR line (WR2) does not cross above the lower limit, a bottoms signal is generated. This indicates that the stock is oversold and may be a good time to buy.

In addition to displaying the WR indicator and tops and bottoms signals, the script also includes some drawing and alert features. You can draw horizontal lines at the upper and lower limits to help you identify when the WR indicator crosses them. You can also set alerts to notify you when a tops or bottoms signal is generated.

Please note that this script is just one tool among many for technical analysis, and you should use it in conjunction with other tools and your own analysis to make your own buy or sell decisions. The purpose of this description is to help users understand the script's functionality and how to use it. If you have any questions, please refer to TradingView's community rules or contact TradingView customer service.