Williams’ Percent Range Indicator  is very similar to the Stochastic Oscillator. The only difference is that %R has an upside down scale and the Stochastic Oscillator has internal smoothing.  Both indicators are momentum indicators and both indicators can  hell to highlight overbought and oversold areas.

Stochastic Metatrader Indicator Calculation:

%K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100
%D = 3-day SMA of %K

Lowest Low = lowest low for the look-back period
Highest High = highest high for the look-back period
%K is multiplied by 100 to move the decimal point two places

Stochastic Divergence Indicator Calculation:

( Highest High in n periods - Today's Close / Highest High in n periods - Lowest Low in n periods ) * -100

We have developed Stochastic Divergence Indicator and Williams’ Percent Range Divergence Indicator

Let's Compare signals from both indicators for EURUSD M15


Stochastic Divergence M15 EURUSD



Williams’ Percent Range Divergence M15 EURUSD



For my opinion, for intraday trading more useful Stochastic divergence indicator, but for scalping strategies(timeframes m5, m1) more useful WPR Divergence indicator.

Williams’ Percent Range Divergence M5 EURUSD



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http://iticsoftware.com