BigTrends “ACE Trader” Coaching

Percent R Rules

Course Instructor:
Price Headley, CFA, CMT
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educational and informational purposes only. The information presented
here does not constitute a recommendation to buy or sell a particular
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Percent R
Convention vs. BigTrends
Larry Williams

Created the Williams Percent R
indicator. Used 14-Bar setting.

Scale was 0 to -100.

Oversold Level: - 80.

Overbought Level: -20.

Extreme levels of -80 & -20 used to
signal reversal points.

Stocks can’t stay oversold or
overbought for an extended period of
time.
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BigTrends

Adapted Percent R to improve
efficiency. Use 30-Bar setting.

New Scale: 0 to +100.

New Oversold Level: 20.

New Overbought Level: 80.

New Extreme levels of 80 & 20 are
used to signal a trending security.

Mid-Line 50 Level is KEY!

Stocks often remain oversold or
overbought for extended periods of
time.
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Williams Percent R
The BigTrends Approach

Key Points

Similar to Acceleration Bands,
Percent R can show big moving
stocks.

Unconventional uses of indicators
can yield lucrative results.

Less noise can lead to better trading.

“Low Risk” entry points are critical to
managing your trades.

Percent R can work on all
timeframes and for all traders.

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Trading the Bubbles

A “Bubble” in a stock is often viewed as a negative.

Bubbles
…BY TRADERS WHO MISSED THE BIG MOVE!

Percent R allows you to spot when the trend is emerging

The Beginning before it becomes obvious to everyone else.

This indicator also tells you when the “Bubble” is bursting.

The Insight

Often happens well before the true collapse.

Stocks that “Bubble Up”, eventually burst and break down, quickly.
KEY POINT
You can trade both sides of this move.

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Percent R
Bullish Entry Rules

BULL SETUP
Look for “overbought” reading above 80.

BULL CONFIRMATION
A close above setup bar’s high, within the
next 5 bars.

BULL RETEST
Once trend is Bull Confirmed, look for a move
below 80 (at 79.50 or less).
This bar’s Low is the new Closing Stop.
“Low Risk Entry Point” to start a position or
add to an existing position.

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Percent R
Bearish Entry Rules

BEAR SETUP
Look for “oversold” reading below 20.

BEAR CONFIRMATION
A close below setup bar’s low, within the next
5 bars.

BEAR RETEST
Once trend is Bear Confirmed, look for a
move above 20 (at 20.50 or more).
This bar’s High is the new Closing Stop.
“Low Risk Entry Point” to start a position or
add to an existing position.

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 Macy’s (M) –Example

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 United States Oil (USO) –Example

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 DryShips (DRYS) –Example

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 FXE (Euro Bullish) - Weekly

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 Do You Have
Any Questions?

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