Hey there all fellow Forex traders. It’s been a while since I last posted here due to work and some massive Forex studies. When lurking around the forums I couldn’t seem to find a good thread about Bill Williams’ trading methods which I have been getting more and more interested in lately. Because of this I would like to open a new thread about it. Mostly it will act as my own trading journal, but I’d like you all to join to make it an active thread about this way of trading. We will discuss the strategies Williams explains in his three books, provide trades, charts and signals based on the strategies and so on! If someone is interested in some Bill Williams reading please PM me and I’ll help you out. Let me know guys! Happy trading!
UPDATE:
I’m working on a pdf. file that summarizes the Williams trading method along with all the different signals and such. It will take some time due to intense working schedules, but I’m doing my best. I would recommend newcomers to this trading approach to read the original books anyway, since they not only provide a really good trading method, but also some huge golden nuggets about trading psychology and general market view.
Well, seems like I’ll have to pump some life into the thread!
I’ll start out with a setup that was triggered last Friday on the AUD/USD pair.
I mainly follow the strategy explained in Bill William’s second book “New Trading Dimensions”.
First of all I scanned the markets for a “sleeping pair”. You can easily identify this kind of situation by looking at the Alligator lines being really close together or intertwined for a longer period of time. The Gator indicator in Metatrader provides easy visual confirmation of this because you will see the histogram being close to the zero line on both sides. Then I will look for fractals forming above and beneath this range and wait for a candle to close beyond one of them. The final step is to place a stop order on the high of this confirmation bar and wait for it to be triggered (inverse for sell). As you can see on my charts I just got triggered on the downside. Now I’ll wait and see how it goes and I’ll start to add on my position when the addon signals described by Williams will start to appear. I would reccomend reading Williams’ material, but I’ll try my best to explain the trading aproach as we go. For now, have a look at my first posted trade, I will keep you updated! Good trading!
Here’s an update on my previous AUD/USD trade. After the weekend the market is against me, but still hasn’t stopped me out according to my Risk Management protocols. Could be that I entered the market a bit early as the market could still be ranging which will make for a strong trend soon. If I get stopped out I’ll stop and reverse the same way I entered the market in the first place. If the market goes my way there’s already an Addon waiting to be triggered. This Addon was generated by the AO oscillator crossing the zero line, but could also have bene a Fractal sell signal or a Balance Line Sell signal. Of course we don’t addon three times on the same bar so we choose one signal and make only one addon each time. I’ll keep you updated! Good Trading!
My second entry signal got triggered yesterday, but due to mixed economic news and the pair failing to take up speed I decided to exit the whole trade with a small profit of about 70 pips total. I might consider entering again on the break of the fractal to the downside if I see enough force in the move. For now I’ll stay on the fence on this one.
Here’s a EUR/USD trade I made on the 5M timeframe. Turned out pretty well with a fair profit of 23 pips.
As usual I waited for the alligator to go flat. Then I looked for a confirmation bar to break the fractal and placed a Sell Stop order beneath this confirmation bar. The stop loss was placed above the alligator by some pips to be sure not to get stopped out on an initial retracement. The next bar triggered me. After a while an ADDON signal was generated and I issued another sellstop beneath the signal bar. In this case it was an AO Saucer Sell signal. This happens when (for a short trade in this case) the bars of the the AO turn green and then again red. The bar that made the AO turn red again is the signal bar and a sell stop is placed on this bar’s low. This signal got triggered also and I exited the trade with profit when closing in on a relevant support and because I had 5 consecutive red bars also (you don’t see the colored bars, because at the time of the picture I didn’t have my zone trade indicator on). Basicaly the zone trade indicator paints the candle red or green when both the AO indicator and the AC indicator are in synch indicating a strong move (Green for bullish and Red for bearish).
Hello all!
I decided to post some potential trade setups for next week. I have two setups on the 1H and one on the daily.
All three charts are presenting quite flat market conditions. The EUR/JPY and AUD/USD have also given a confirmation bar signal past the fractals too and are ready to be taken as soon as market reopens. For the GBP/USD I’ll have to wait for the confirmation bar before entering any pending orders. Have a look!
Wish you all a great weekend!
Hello everybody!
I entered my first trade for the week on USD/CHF.
Usual fractal break and confirmation bar trigger. I will update you the trade as it goes!
Have a look!
Wow, this on was quick! The trade went my way and gave me a nice profit of 42 pips. I had a clear exit in mind here at a relevant resistance line and I wanted to exit before the FOMC release later today. I’m pretty satisfied, but I wish I had any ADDON signals. A good trade anyway and the third successful one in a row. Not bad! Have a look at how it all went down!
Friday trading seems too calm to be of any interest. I’ll pass and enjoy the weekend. So far the method had proven valid and I’m up 4,5% of return in a week on the initial investment which is promising. I will keep you updated and feel free to come with inputs. It would be great to trade with fellow Williams traders out there. If work doesn’t eat up much of the time I’ll soon be finished with the PDF about the method. Have a good weekend everybody!
I have been looking around at posts here and Forex Factory.
The current method does not include most signals used in New Trading Dimensions. Trading Chaos: Second Edition is a bit out of date now since some of the ideas have been revised.
I see your examples here and wonder about your current trading campaigns. Are you still trading intraday or inter-day?
I trade the Chaos Method as well and trade the 1 HR 4HR and Daily set-up I use to trade the weekly set-ups as well but find those set-ups come few and far betwwen so just trade 1 hr 4 hr and daily now with great results I only use one contract bassis for now though.
I’m working on a pdf. file that summarizes the Williams trading method along with all the different signals and such. It will take some time due to intense working schedules, but I’m doing my best. I would recommend newcomers to this trading approach to read the original books anyway, since they not only provide a really good trading method, but also some huge golden nuggets about trading psychology and general market view.
