William Histogram

The William Histogram Waller Test is a VertexFX client side VTL indicator which is a variant of the Larry Williams %R method and is used to find trending markets.

To calculate the indicator value, we find the Highest High and the Lowest Low of the recent 40 bars. We calculate the ratio by dividing the difference between the Highest High and the current close, by the difference between the Highest High and the Lowest Low. This value is multiplied by 100, and scaled in the range of -50 to +50. When the markets are rising, the difference between the Highest High and the Close increases as the market makes new Highs, whereas the difference between the Highest High and Lowest Low remains more or less constant as the trend upwards. Hence the indicator value rises and responds quickly to rising and falling markets. It requires at least 40 bars of data for calculations.

BUY – Place Buy position when indicator value has reached negative extreme below zero and is rising for at least two bars.
SELL – Place Sell position when indicator value has reached positive extreme above zero and is falling for at least two bars.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.