Bill Williams Fractals Chaos Trading Indicator (from Fibolab)

July 10, 2017 | Author: omni72 | Category: Fractal, Technical Analysis, Chaos Theory, Market Trend, Algorithmic Trading
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Descripción: Based on the work done by Bill Williams incorporating chaos theory into trading systems....


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http://www.fibo m/fo rex_indicato rs/bill_williams_fractals/

Forex Fractals (chaos) trading indicator BWI Fractals (phase space) trading indicator short info "Fractal — it is price behavior change. It means if fractal has appeared - price will change it direction. Fractal is a five bars sequence, where the central bar has higher maximum or lower minimum. The fractal arrow shows central bar position." © Bill Williams. "Trading Chaos" see book... Indicator: Implements "Chaos trading system" (by Bill Williams) 1st and main phase of the strategy Shows active trading signals Easy to customize Has Presets

Appearance of the BWI Fractals indicator

All f ilters are enabled: shows only usef ul f ractals shows trade signals shows break out positions f or current f ractals

On the image you can see def ault view of the BWI f ractal indicator. (As soon as you have added it to a chart.) Buy Fractals are shown as green arrows; Sell Fractals are shown as blue. Current (active) f ractals shown by big arrows. T he Fractal is not a signal to open a deal on its own.Signal will appear when price go higher f ractal’s maximum (or lower f ractal’s minimum) on certain number of pips (in the original 1 pips). Once price go higher/lower – in breakout position will appear corresponding arrow. To show where trader should place a pending order (using new f ractal signal) – the indicator draws dotted line. Appearance, colors, distance f rom f ractal maximum/minimum (is used to show f ractal breakout signal) and etc. trader can adjust using properties of the indicator.

How to Use - BWI Fractals trading signals "Our first signal entry into any market is always the first fractal outside the Alligator’s mouth. Once this signal is hit, we will take any and all signals that are triggered in that direction. If the buy signal is above the Red Balance Line (the Alligator’s Teeth), we would place a buy stop one tick above the high of the up fractal. If the sell signal is below the Red Balance Line, we would place a sell stop one tick below the low of the fractal sell signal. We would not take a fractal sell signal if, at the time it is hit, the price is above the Red Balance Line. This is the best method we have found to filter out nonprofitable fractal trades." © Bill Williams. "Trading Chaos" see book...

How to Use - BWI Fractals trading signals filter

General Information about Fractals All markets are characterized by the f act that on the most part the prices do not change too much, and only short periods of time (15–30 percent) account f or trend changes. Most lucrative periods are usually the case when market prices change according to a certain trend. A Fractal is one of f ive indicators of Bill Williams’ trading system, which allows to detect the bottom or the top. Fractal Technical Indicator it is a series of at least f ive successive bars, with the highest HIGH in the middle, and two lower HIGHs on both sides. T he reversing set is a series of at least f ive successive bars, with the lowest LOW in the middle, and two higher LOWs on both sides, which correlates to the sell f ractal. T he f ractals are have High and Low values and are indicated with the up and down arrows. T he f ractal needs to be f iltrated with the use of Alligator. In other words, you should not close a buy transaction, if the f ractal is lower than the Alligator’s Teeth, and you should not close a sell transaction, if the f ractal is higher than the Alligator’s Teeth. Af ter the f ractal signal has been created and is in f orce, which is determined by its position beyond the Alligator’s Mouth, it remains a signal until it gets attacked, or until a more recent f ractal signal emerges.

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