As TrendSpider has just introduced lower indicators, we think the use of these tools can be very resourceful if used correctly. Last week, we touched on how to add these indicators to the chart as well as what to look for between price action and the lower indicators. This week, we are going to take a look at the relationship between two momentum oscillators, the Williams % Range and Relative Strength Index.
As you can see from the video, the Williams % Range is more of a sensitive indicator than the RSI. This is helpful because you can identify when reversals or continuations may be occurring based on the relationship of the Williams % Range moving down first. It is important to note that users must use the same input for both indicators (default is 14 time periods) when looking to compare. If a user uses a 5-period time frame RSI and a 20-period time frame Williams % Range, for example, this relationship may not exist.