Williams Indicators simple strategy for M2
- VFX Blog
- Strategies
Bill Williams indicators are one of the most popular and proven trading tools. They are used in both manual and auto binary signals pro strategies. You can trade only on them, getting a profit on any asset, as in our example.
- Alligator. Bill Williams trend indicator, by which we determine the opening point of the option. The strategy is not intended for trading during flat periods. We trade only if the range is at least 15-25 points!
- Williams Percent Range (Williams %R). All indicators on moving averages must be confirmed by an oscillator indicating an overbought state, when buyers can no longer move the price up, or oversold, when there is almost no one in the market to sell at lower prices.
- Awesome Oscillator (AO). The oscillator should finally confirm the option signal. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.
- HIHGER (CALL) option. Alligator moving averages are directed upwards the price breaks through them all and are above them. Williams %R comes out of the oversold area (level 80) or is directed upwards. AO green and up.
- LOWER (PUT) option. Reverse conditions: Alligator moving averages are directed downwards, the price breaks through all of them and is under them. Williams %R comes out of the overbought area (level 20) or is directed down. AO is red and down.
Let's look at oscillators. Williams %R is leaving the overbought zone. This means that there is a price high at the level of the candlestick pattern, at which the potential of buyers ended in the past. The second attempt to break through the maximum and continue the trend will probably not be successful, here %R works as a leading binary signal.
The Awesome Oscillator also confirms the change in the balance of power by the sellers (the red bar is at the high of the histogram). It is better to open a LOWER option, on which a profitable expiration is more likely.
See the video for more details: