Readings between 0 and -20 indicate an overbought market, while readings between -80 and -100 indicate an oversold market. Rather than blindly buying oversold conditions, Williams advocates waiting for the indicator to exit the extreme zone as confirmation of a reversal. Commitment of Traders (COT) Report Analysis
Because these books are out of print, finding new copies is difficult. However, used copies are available through various online marketplaces: the definitive guide to futures trading larry williams pdf
Williams warns against blindly selling just because an asset is overbought. Instead, look for a failure to maintain momentum, or combine %R with structural support/resistance to time entries. The Ultimate Oscillator Readings between 0 and -20 indicate an overbought
: Never open positions against the current direction of asset price movement. However, used copies are available through various online
You can have a strategy with a 70% win rate, but without proper position sizing, an adverse streak can wipe out your account. Larry Williams emphasizes that risk management is the single most important factor determining longevity in futures trading.