Abacus Community Williams %R + Bollinger %B

📌 Indicator Description (Professional & Clear)

Williams %R + Bollinger %B Momentum Indicator (ThinkOrSwim Style)

This custom indicator combines Williams %R and Bollinger %B into a single, unified panel to provide a powerful momentum-and-positioning view of price action. Modeled after the ThinkOrSwim version used by professional traders, it displays:

✅ Williams %R (10-period) – Yellow Line

This oscillator measures the market's position relative to recent highs and lows.
It plots on a 0% to 100% scale, where:

80–100% → Overbought region

20–0% → Oversold region

50% → Momentum equilibrium

Williams %R helps identify exhaustion, trend strength, and potential reversal zones.

✅ Bollinger %B (20, 2.0) – Turquoise Histogram Bars

%B shows where price is trading relative to the Bollinger Bands:

Above 50% → Price is in the upper half of the band (bullish pressure)

Below 50% → Price is in the lower half (bearish pressure)

Near 100% → Price pushing upper band (possible breakout)

Near 0% → Price testing lower band (possible breakdown)

The histogram visually represents momentum shifts in real time, creating a clean profile of volatility and strength.

🎯 Why This Combination Works

Together, Williams %R and Bollinger %B reveal:

Momentum direction

Overbought/oversold conditions

Volatility compression & expansion

Trend continuation vs reversal zones

High-probability inflection points

Williams %R shows oscillation and exhaustion, while %B shows pressure inside volatility bands.
The combination helps identify whether momentum supports the current trend or is weakening.

🔍 Use Cases

Detect early trend reversals

Validate breakouts and breakdowns

Spot momentum failure in price extremes

Confirm pullbacks and continuation setups

Time entries and exits with higher precision

💡 Best For

Swing traders

Momentum traders

Trend-followers

Options traders (for timing premium decay or volatility expansion)