The Williams %Range (%R) Study, is the exact inverse of Lane's Stochastic Study. You may see the relationship between the stochastic and %R very clearly by charting the same symbol in two chart windows that are stacked vertically. Put the %R in one window and stochastics in the other as shown.
This indicator measures market pressure by comparing the relationship between Closing price and daily range to quantify accumulation, or buying pressure, and distribution, or selling pressure. The indicator is calculated as follows: When current close is higher than the previous close, AD increases by current Close minus minimum (Current Low or Previous Close). When current Close is lower than the previous Close, AD decreases by maximum (Current High or Previous Close). Look for divergence of William's AD and price. Rising prices and falling AD can indicate a selling opportunity.