This indicator is popular among traders, what if you wanted to know what price would cause the %R to cross the overbought or oversold threshold?
what I decided to do is tweak what we are solving for Close (X) by adding Overbought/Oversold for %R (Y) in the the formula :
Old formula:
Y = ((H-X)/(H-L))*-100
Where
Y = Oversold or Overbought
H = High N Period
L = Low N Period
X = Price
With some simple algebra, I change the formula to solve for X
X = (H*Y)/100 + H - (LY)/100
Y = Oversold or Overbought
H = High N Period
L = Low N Period
X = Price
Now I change the X to solve for one of my favorite Moving Average in order to smooth out the indicator.
What you end up with is a indicator that looks at a smoothed %R drawn on price, add the overbought and oversold percents and it become a cool little indicator.