As is the case with every indicator, there are trades that can be found with oversold readings AND over-bought readings. The Williams %R indicator is no exception.

To illustrate this, I bring you 2 charts. The first is the Daily chart of $CSCO:

Very elevated reading here and the Hanging Man candle seals the deal.

Now for a chart of $TSN (recent earnings report too):

Another with a very elevated reading but may still have a little left in the tank. A Short here would require a little more patience but a nice trigger nonetheless.