Bill Williams Indicators

Bill Williams Indicators

Bill Williams Indicators

Bill Williams was one of the first traders to implement the principles of market psychology into his trading strategy. Thanks to that, he developed a series of indicators that turned out to be very effective in predicting market movements. So if you have already mastered all basic techniques and are now looking for additional tools to help you make some profit, this may very well be the solution. In this article, we will give you a short overview of Bill Williams indicators and what they actually do, so that you can see whether or not they’d suit your style of trading. A more detailed analysis of each of them will be posted on our website a bit later. Let’s go!

Bill Williams Indicators | Time and volume

Probably the most famous of all Bill Williams indicators is the so-called Alligator Indicator. It is based on Time, namely the fact that markets trend between 15 and 30% of the time, with the rest being relatively quiet. If you know this, then you can make a pretty accurate guess when a trend is going to form, especially if you know that there hasn’t been one for a while. Apart from that, this trader also came up with the Market Facilitation Index, which takes Volume into consideration. This can be seen as a drawback because the volume can never be that of the whole market, but only that of the broker you’re trading with. Still, the MFI can be very useful if your sample is big enough.

Bill Williams Indicators | Oscillators

Apart from those two, Bill Williams indicators include three important oscillators. The Gator Oscillator creates signals based on three SMMAs (Smoothed Moving Averages) and is most useful for detecting trends that are about to start or those that are nearing their end. Next, we have the Accelerator Oscillator, which is primarily used in ranging conditions and helps you to determine the turning point of oversold and overbought areas. And finally, the indicator with probably the most interesting name of them all – the Awesome Oscillator. This shows us market momentum based on simple moving averages, but these are not closing price averages, but middle points of every candle. With this oscillator, you can also anticipate upcoming trends and their reversals.

Bill Williams Indicators | Conclusion

As you can see, Bill Williams indicators can help you out in many different market situations. No matter if you base your decisions on time, volume or maybe averages, a tool can always be found that can will you make the right call. If you consider yourself to be an advanced trader and are looking for new tools to help you increase your trading efficiency, you can’t go wrong with studying these. If that doesn’t seem appealing to you, we have loads of educational articles right here on our website, so take a look around and you’ll surely find what you need.


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Author: Ben Prescott

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