FOREX Larry Williams
Strategy by Larry Williams
Larry Williams is perhaps the symbol of a short-term trading.
man who every year proves that currency trading can earn hundreds and thousands percent per annum. Once it has increased its capital from 10.000 to 1.170.000 dollars per year! I I suggest you read one of his strategies.
strategy is to buy at the price of 3-bar moving average minimum, if, under Technology trend identification of pivot points, trend is positive, and close a position on the 3-bar moving average of highs.
signals to sell are the exact opposite.
This means that you will take a short position on the 3-bar moving average of highs and close to the 3-bar moving average lows. It would be foolish to do so without reasons to accept signals only for short sales.
A big reason for this could well be that our system is turning point by point vibrations suggested to us that the trend will go down. Then, and only then, sell and close to the maximum to a minimum.
Now let's put all this some order. Figure 9.5 shows the imposition of a 3-bar moving average line fluctuations. I noted the point where the trend changes direction, so we switch from buying to a minimum to enter short positions on the highs, following reversals trend.
Also shown are the entry points on 3-bar highs and lows. The game goes as follows: trend turns up, so we buy on line 3-bar low, pick up the profit on the 3-bar maximum forward and rolling back to a 3 bar minimum.
If, however, the 3-bar reversal creates at least trend in the sale, you should skip the deal. Short sales are made in exactly the opposite: have to wait for a trend reversal down, and then sell on the 3-bar highs and take profit on 3-bar minimums.
Confucius must have been a Chartist, when said that one picture (a graph) is worth a thousand words.
The figure marked all trend reversals, so You can start paper trading, seeking input and outlets for buying and selling. I suggest a walk on the chart to get a feel for how we can trade, using the approach with very short nature of the action. Note that this hour bars, but concept will work and other temporary scale: 5-minute 240-minute bars.
Another way, which offers Larry Williams this use of shock and days is finding a market, which is marking time.
«Then I note the striking day and acting accordingly, as soon erupts high or low impact day. I assume, that we are likely to see a breakthrough of congestion pricing (breakout of the congestion), if impact day immediately reverse. Such action like a market that moved there, where there were everything stops, and covered all the "babies breakthrough" there apart your order ».
I noted examples to demonstrate the shape the shock of the day in trading ranges.
breakthrough - a signal for traders to take up the case and they do it. What kills them is the immediate reversal that takes place the next day. They do not can not believe his "luck" and decides to stay in spite of the reversal: a few days later they leaving their positions, adding energy movement which we caught by the shock of the day figure.