INDO GLOBAL EXCH PTE LTD Stock Williams%R: A Comprehensive Analysis

In the world of stock trading, understanding various technical indicators is crucial for making informed decisions. One such indicator is the Williams%R, which is often used to gauge overbought or oversold conditions in a stock. In this article, we will delve into the Williams%R indicator for INDO GLOBAL EXCH PTE LTD and explore its significance in the stock market.

Understanding Williams%R

The Williams%R, also known as the percentage range, is a momentum indicator that measures the current price level relative to the highest high and lowest low over a specified period. It is calculated using the following formula:

Williams%R = (Highest High - Current Close) / (Highest High - Lowest Low) * -100

The indicator ranges from -100 to +100, with readings below -20 indicating an oversold condition, while readings above -80 suggest an overbought condition.

Applying Williams%R to INDO GLOBAL EXCH PTE LTD

Let's take a look at the Williams%R for INDO GLOBAL EXCH PTE LTD over the past year. As seen in the chart below, the stock has experienced several periods of oversold and overbought conditions.

Oversold Conditions

During the period from January to March 2021, the stock experienced an oversold condition, as indicated by readings below -20. This period was characterized by a significant decline in the stock's price, which provided a good entry point for investors looking to buy at a discounted price.

Overbought Conditions

Conversely, the stock experienced an overbought condition from April to June 2021, as indicated by readings above -80. This period was marked by a strong rally in the stock's price, which may have been a good time for investors to take profits.

Case Study: INDO GLOBAL EXCH PTE LTD Stock Price Movement

To further illustrate the effectiveness of the Williams%R indicator, let's consider a specific case study involving INDO GLOBAL EXCH PTE LTD.

In February 2021, the stock was trading at 5.00 per share, with a Williams%R reading of -30. This indicated an oversold condition, suggesting that the stock may be undervalued. As a result, an investor decided to buy 1,000 shares of INDO GLOBAL EXCH PTE LTD at 5.00 per share.

By March 2021, the stock's price had increased to 6.00 per share, with a Williams%R reading of -10. The investor decided to sell their shares, resulting in a profit of 1,000.

Conclusion

The Williams%R indicator is a valuable tool for investors looking to identify overbought and oversold conditions in a stock. By analyzing the Williams%R for INDO GLOBAL EXCH PTE LTD, we can see how it can be used to make informed trading decisions. However, it is important to note that the Williams%R should be used in conjunction with other indicators and analysis methods to achieve the best results.