About the indicators that can help to find favorable moments for entering the market and closing points for deals, I learned from Bill Williams’ books. Although, no, not exactly. I read “Trading chaos” by Williams after I found out that he came up with an indicator “alligator”, which, in turn, he heard about when he was viewing a video lecture of kind of like a successful trader.
Assistants in Forex trading today
There are a lot of indicators, as well as trading strategies. But I decided to stop on the indicators that Bill Williams described in his books. I liked his books, his philosophy, his psychology. As a result, I decided not to hammer theory into my head, but to apply in practice what I have already learned.
It is a complex of three lines – green, red and white, figuratively called the jaw, teeth and lips, respectively, which form the mouth of the alligator. This indicator helps to track trends in the market. When the lines intersect with each other (the mouth of the alligator is closed), the market does not move anywhere. When the lines diverge (the jaws open), then there is a trend on the market and it is possible to guess quite accurately the direction of price movement.
As you know, the price change in the market has an oscillatory character. So the fractals are nothing less than the minima and maxima (extremes) of this oscillatory movement. There are fractals down and fractals up. After the fractal is up, the price goes down until the fractal is formed down, after which the price goes up, etc. Based on the above, you can find points of purchase or sale, in other words – the entrance to the market.
This indicator shows the acceleration or deceleration of price changes in the market and is displayed as a histogram. Periods of price growth are displayed in green bars of the histogram, and periods of fall – in red.
An indicator that measures the dynamics of the market, its driving force, and is also depicted in the form of a histogram. Any column of the histogram that appears above the previous column is drawn in green. The red color of the column is the column, which is lower than the previous one. This kind of “picture” helps to observe the change in the driving force of the market quite easily.