High Accuracy Bill Williams Fractals Alligator Trading System – There are a lot of signals in the trading strategy of Bill Williams which help a trader to open successful orders but the main of them are those which are shown by Fractals and Alligator indicators.
Fractals and Alligator indicators – They don’t only offer the places to set beneficial orders but also allow to learn fast the wave analysis on which all the author’s concept is based.
Alligator is 3 lines of the balance, calculated according to the same formula with different variables.
- GREEN line is the Alligator’s Lips
- BLUE one is the Alligator’s Jaws
- RED line is the Alligator’s Teeth
When they are intertwined the Alligator is “ASLEEP” and there is a flat on the market, otherwise there is a trend on the market.
It is not complicated to determine its direction when the price is higher then jaws this means that the trend is upwards (bullish) if the price is lower then the trend is down (bearish).
It is very important to watch the location of the price on several time-frames which you can choose depending on the way you trade.
For example, if you open the orders according to the 5-minute chart then you should also assess the situation on the 1 minute and 10-minute charts, i.e. you should always assess the neighbor time-frames.
There is a possibility that the trend is upwards according to the hour chart and it is down according to the daily chart, most likely this means that there is the pullback of the price which we can watch inside the day and it is not worth to expect a long movement in this direction.
The fractals indicate a bottom or a top. The basic fractal indicator is composed of a very minimum of 5 bars. So when you see a fractal here is what may have happened for it to appear:
There were a series of at least five successive bars, with the highest high in the middle and then the two lower highs are on both sides.
- There was a reversing series of at least five successive bars, when the lowest low is in the middle and the two higher lows were on both sides (which forms a SELL fractal).
- Fractals can appear with only one candle to the right of it but be aware that this is an unconfirmed fractal because the price action may pierce through the level. So in order for a fractal to appear and stay on the chart forever, the trader must wait for 2 candles to the right of the fractal.
- The fractals have whats called a high and a low value. This is indicated by the up or down arrows.
Let’s get into our chart example for this Bill Williams Fractals Alligator Trading System.
The standard rule formulated by trading fractals Bill Williams states that LONG trade setups are valid if the HIGH fractal is above the “alligator’s teeth” and Williams Percent Range above -50 level, and SHORT trade setups are valid if the LOW fractal is below the “alligator’s teeth” and Williams Percent Range below -50 level.
- Best Time Frame: H1, H4, and Daily
- Recommended Currency Pairs: GBPUSD, EURUSD, USDJPY, … All Major Pairs
- Fractals
- Alligator
- Signal Trend
- Williams Percent Range
- LOW Fractal above Alligator’s Teeth
- Williams Percent Range line above -50 level
- Signal Trend Green color
- HIGH Fractal below Alligator’s Teeth
- Williams Percent Range line below -50 level
- Signal Trend Red color
This High Accuracy Bill Williams Fractals Alligator Trading System should lead you in the right direction of the market.
There are many different strategies you can use with “Fractals” indicator, but in our experience, we like this combination of the Bill WilliamsTrading System.
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