Williamsfractals — Indicators and Strategies

MultiLayer Awesome Oscillator Saucer Strategy [Skyrexio]Overview MultiLayer Awesome Oscillator Saucer Strategy leverages the combination of Awesome Oscillator (AO), Williams Alligator, Williams Fractals and Exponential Moving Average (EMA) to obtain the high probability long setups. Moreover, strategy uses multi trades system, adding funds to long position if it considered that current trend has likely became stronger. Awesome Oscillator is used for creating signals, while Alligator and Fractal are used in conjunction as an approximation of short-term trend to filter them. At the same time EMA (default EMA's period = 100) is used as high probability long-term trend filter to open long trades only if it considers current price action as an uptrend. More information in "Methodology" and "Justification of Methodology" paragraphs. The strategy opens only long trades. Unique Features No fixed stop-loss and take profit: Instead of fixed stop-loss level strategy utilizes technical condition obtained by Fractals and Alligator to identify when current uptrend is likely to be over (more information in "Methodology" and "Justification of Methodology" paragraphs) Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions. Multilayer trades opening system: strategy uses only 10% of capital in every trade and open up to 5 trades at the same time if script consider current trend as strong one. Short and long term trend trade filters: strategy uses EMA as high probability long-term trend filter and Alligator and Fractal combination as a short-term one. Methodology The strategy opens long trade when the following price met the conditions: 1. Price closed above EMA (by default, period = 100). Crossover is not obligatory. 2. Combination of Alligator and Williams Fractals shall consider current trend as an upward (all details in "Justification of Methodology" paragraph) 3. Awesome Oscillator shall create the "Saucer" long signal (all details in "Justification of Methodology" paragraph). Buy stop order is placed one tick above the candle's high of last created "Saucer signal". 4. If price reaches the order price, long position is opened with 10% of capital. 5. If currently we have opened position and price creates and hit the order price of another one "Saucer" signal another one long position will be added to the previous with another one 10% of capital. Strategy allows to open up to 5 long trades simultaneously. 6. If combination of Alligator and Williams Fractals shall consider current trend has been changed from up to downtrend, all long trades will be closed, no matter how many trades has been opened. Script also has additional visuals. If second long trade has been opened simultaneously the Alligator's teeth line is plotted with the green color. Also for every trade in a row from 2 to 5 the label "Buy More" is also plotted just below the teeth line. With every next simultaneously opened trade the green color of the space between teeth and price became less transparent. Strategy settings In the inputs window user can setup strategy setting: EMA Length (by default = 100, period of EMA, used for long-term trend filtering EMA calculation). User can choose the optimal parameters during backtesting on certain price chart. Justification of Methodology Let's go through all concepts used in this strategy to understand how they works together. Let's start from the easies one, the EMA. Let's briefly explain what is EMA. The Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent prices, making it more responsive to current price changes compared to the Simple Moving Average (SMA). It is commonly used in technical analysis to identify trends and generate buy or sell signals. It can be calculated with the following steps: 1.Calculate the Smoothing Multiplier: Multiplier = 2 / (n + 1), Where n is the number of periods. 2. EMA Calculation EMA = (Current Price) × Multiplier + (Previous EMA) × (1 − Multiplier) In this strategy uses EMA an initial long term trend filter. It allows to open long trades only if price close above EMA (by default 50 period). It increases the probability of taking long trades only in the direction of the trend. Let's go to the next, short-term trend filter which consists of Alligator and Fractals. Let's briefly explain what do these indicators means. The Williams Alligator, developed by Bill Williams, is a technical indicator designed to spot trends and potential market reversals. It uses three smoothed moving averages, referred to as the jaw, teeth, and lips: Jaw (Blue Line): The slowest of the three, based on a 13-period smoothed moving average shifted 8 bars ahead. Teeth (Red Line): The medium-speed line, derived from an 8-period smoothed moving average shifted 5 bars forward. Lips (Green Line): The fastest line, calculated using a 5-period smoothed moving average shifted 3 bars forward. When these lines diverge and are properly aligned, the "alligator" is considered "awake," signaling a strong trend. Conversely, when the lines overlap or intertwine, the "alligator" is "asleep," indicating a range-bound or sideways market. This indicator assists traders in identifying when to act on or avoid trades. The Williams Fractals, another tool introduced by Bill Williams, are used to pinpoint potential reversal points on a price chart. A fractal forms when there are at least five consecutive bars, with the middle bar displaying the highest high (for an up fractal) or the lowest low (for a down fractal), relative to the two bars on either side. Key Points: Up Fractal: Occurs when the middle bar has a higher high than the two preceding and two following bars, suggesting a potential downward reversal. Down Fractal: Happens when the middle bar shows a lower low than the surrounding two bars, hinting at a possible upward reversal. Traders often combine fractals with other indicators to confirm trends or reversals, improving the accuracy of trading decisions. How we use their combination in this strategy? Let’s consider an uptrend example. A breakout above an up fractal can be interpreted as a bullish signal, indicating a high likelihood that an uptrend is beginning. Here's the reasoning: an up fractal represents a potential shift in market behavior. When the fractal forms, it reflects a pullback caused by traders selling, creating a temporary high. However, if the price manages to return to that fractal’s high and break through it, it suggests the market has "changed its mind" and a bullish trend is likely emerging. The moment of the breakout marks the potential transition to an uptrend. It’s crucial to note that this breakout must occur above the Alligator's teeth line. If it happens below, the breakout isn’t valid, and the downtrend may still persist. The same logic applies inversely for down fractals in a downtrend scenario. So, if last up fractal breakout was higher, than Alligator's teeth and it happened after last down fractal breakdown below teeth, algorithm considered current trend as an uptrend. During this uptrend long trades can be opened if signal was flashed. If during the uptrend price breaks down the down fractal below teeth line, strategy considered that uptrend is finished with the high probability and strategy closes all current long trades. This combination is used as a short term trend filter increasing the probability of opening profitable long trades in addition to EMA filter, described above. Now let's talk about Awesome Oscillator's "Sauser" signals. Briefly explain what is the Awesome Oscillator. The Awesome Oscillator (AO), created by Bill Williams, is a momentum-based indicator that evaluates market momentum by comparing recent price activity to a broader historical context. It assists traders in identifying potential trend reversals and gauging trend strength. AO = SMA5(Median Price) − SMA34(Median Price) where: Median Price = (High + Low) / 2 SMA5 = 5-period Simple Moving Average of the Median Price SMA 34 = 34-period Simple Moving Average of the Median Price Now we know what is AO, but what is the "Saucer" signal? This concept was introduced by Bill Williams, let's briefly explain it and how it's used by this strategy. Initially, this type of signal is a combination of the following AO bars: we need 3 bars in a row, the first one shall be higher than the second, the third bar also shall be higher, than second. All three bars shall be above the zero line of AO. The price bar, which corresponds to third "saucer's" bar is our signal bar. Strategy places buy stop order one tick above the price bar which corresponds to signal bar. After that we can have the following scenarios. Price hit the order on the next candle in this case strategy opened long with this price. Price doesn't hit the order price, the next candle set lower low. If current AO bar is increasing buy stop order changes by the script to the high of this new bar plus one tick. This procedure repeats until price finally hit buy order or current AO bar become decreasing. In the second case buy order cancelled and strategy wait for the next "Saucer" signal. If long trades has been opened strategy use all the next signals until number of trades doesn't exceed 5. All trades are closed when the trend changes to downtrend according to combination of Alligator and Fractals described above. Why we use "Saucer" signals? If AO above the zero line there is a high probability that price now is in uptrend if we take into account our two trend filters. When we see the decreasing bars on AO and it's above zero it's likely can be considered as a pullback on the uptrend. When we see the stop of AO decreasing and the first increasing bar has been printed there is a high probability that this local pull back is finished and strategy open long trade in the likely direction of a main trend. Why strategy use only 10% per signal? Sometimes we can see the false signals which appears on sideways. Not risking that much script use only 10% per signal. If the first long trade has been open and price continue going up and our trend approximation by Alligator and Fractals is uptrend, strategy add another one 10% of capital to every next saucer signal while number of active trades no more than 5. This capital allocation allows to take part in long trades when current uptrend is likely to be strong and use only 10% of capital when there is a high probability of sideways. Backtest Results Operating window: Date range of backtests is 2023.01.01 - 2024.11.25. It is chosen to let the strategy to close all opened positions. Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks. Initial capital: 10000 USDT Percent of capital used in every trade: 10% Maximum Single Position Loss: -5.10% Maximum Single Profit: +22.80% Net Profit: +2838.58 USDT (+28.39%) Total Trades: 107 (42.99% win rate) Profit Factor: 3.364 Maximum Accumulated Loss: 373.43 USDT (-2.98%) Average Profit per Trade: 26.53 USDT (+2.40%) Average Trade Duration: 78 hours These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters. How to Use Add the script to favorites for easy access. Apply to the desired timeframe and chart (optimal performance observed on 3h BTC/USDT). Configure settings using the dropdown choice list in the built-in menu. Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}} Disclaimer: Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation

Fractal Trail [UAlgo]The Fractal Trail is designed to identify and utilize Williams fractals as dynamic trailing stops. This tool serves traders by marking key fractal points on the chart and leveraging them to create adaptive stop-loss trails, enhancing risk management and trade decision-making. Williams fractals are pivotal in identifying potential reversals and critical support/resistance levels. By plotting fractals dynamically and providing configurable options, this indicator allows for personalized adjustments based on the trader's strategy. This script integrates both visual fractal markers and adjustable trailing stops, offering insights into market trends while catering to a wide variety of trading styles and timeframes. 🔶 Key Features Williams Fractals Identification: The indicator marks Williams Fractals on the chart, which are significant highs and lows within a specified range. These fractals are crucial for identifying potential reversal points in the market. Dynamic Trailing Stops: The indicator generates dynamic trailing stops based on the identified fractals. These stops adjust automatically as new fractals are formed, providing a responsive and adaptive approach to risk management. Fractal Range: Users can specify the number of bars to the left and right for analyzing fractals, allowing for flexibility in identifying significant price points. Trail Buffer Percentage: A percentage-based safety margin can be added between the fractal price and the trailing stop, providing additional control over risk management. Trail Invalidation Source: Users can choose whether the trailing stop flips based on candle closing prices or the extreme points (high/low) of the candles. Alerts and Notifications: The indicator provides alerts for when the price crosses the trailing stops, as well as when new Williams Fractals are confirmed. These alerts can be customized to fit the trader's notification preferences. 🔶 Interpreting the Indicator Fractal Markers: The triangles above and below the bars indicate Williams Fractals. These markers help traders identify potential reversal points in the market. Trailing Stops: The dynamic trailing stops are plotted as lines on the chart. These lines adjust based on the latest identified fractals, providing a visual representation of potential support and resistance levels. Fill Colors: The optional fill colors between the trailing stops and the price action help traders quickly identify the current trend and potential pullback zones. 🔶 Disclaimer Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals. Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator. Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies. Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses. No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.

Fractal Trend Detector [Skyrexio]Introduction Fractal Trend Detector leverages the combination of Williams fractals and Alligator Indicator to help traders to understand with the high probability what is the current trend: bullish or bearish. It visualizes the potential uptrend with the coloring bars in green, downtrend - in red color. Indicator also contains two additional visualizations, the strong uptrend and downtrend as the green and red zones and the white line - trend invalidation level (more information in "Methodology and it's justification" paragraph) Features Optional strong up and downtrends visualization: with the specified parameter in settings user can add/hide the green and red zones of the strong up and downtrends. Optional trend invalidation level visualization: with the specified parameter in settings user can add/hide the white line which shows the current trend invalidation price. Alerts: user can set up the alert and have notifications when uptrend/downtrend has been started, strong uptrend/downtrend started. Methodology and it's justification In this script we apply the concept of trend given by Bill Williams in his book "Trading Chaos". This approach leverages the Alligator and Fractals in conjunction. Let's briefly explain these two components. The Williams Alligator, created by Bill Williams, is a technical analysis tool used to identify trends and potential market reversals. It consists of three moving averages, called the jaw, teeth, and lips, which represent different time periods: Jaw (Blue Line): The slowest line, showing a 13-period smoothed moving average shifted 8 bars forward. Teeth (Red Line): The medium-speed line, an 8-period smoothed moving average shifted 5 bars forward. Lips (Green Line): The fastest line, a 5-period smoothed moving average shifted 3 bars forward. When the lines are spread apart and aligned, the "alligator" is "awake," indicating a strong trend. When the lines intertwine, the "alligator" is "sleeping," signaling a non-trending or range-bound market. This indicator helps traders identify when to enter or avoid trades. Williams Fractals, introduced by Bill Williams, are a technical analysis tool used to identify potential reversal points on a price chart. A fractal is a series of at least five consecutive bars where the middle bar has the highest high (for a up fractal) or the lowest low (for a down fractal), compared to the two bars on either side. Key Points: Up fractal: Formed when the middle bar shows a higher high than the two preceding and two following bars, signaling a potential turning point downward. Down fractal: Formed when the middle bar has a lower low than the two surrounding bars, indicating a potential upward reversal. Fractals are often used with other indicators to confirm trend direction or reversal, helping traders make more informed trading decisions. How we can use its combination? Let's explain the uptrend example. The up fractal breakout to the upside can be interpret as bullish sign, there is a high probability that uptrend has just been started. It can be explained as following: the up fractal created is the potential change in market's behavior. A lot of traders made a decision to sell and it created the pullback with the fractal at the top. But if price is able to reach the fractal's top and break it, this is a high probability sign that market "changed his opinion" and bullish trend has been started. The moment of breaking is the potential changing to the uptrend. Here is another one important point, this breakout shall happen above the Alligator's teeth line. If not, this crossover doesn't count and the downtrend potentially remaining. The inverted logic is true for the down fractals and downtrend. According to this methodology we received the high probability up and downtrend changes, but we can even add it. If current trend established by the indicator as the uptrend and alligator's lines have the following order: lips is higher than teeth, teeth is higher than jaw, script count it as a strong uptrend and start print the green zone - zone between lips and jaw. It can be used as a high probability support of the current bull market. The inverted logic can be used for bearish trend and red zones: if lips is lower than teeth and teeth is lower than jaw it's interpreted by the indicator as a strong down trend. Indicator also has the trend invalidation line (white line). If current bar is green and market condition is interpreted by the script as an uptrend you will see the invalidation line below current price. This is the price level which shall be crossed by the price to change up trend to down trend according to algorithm. This level is recalculated on every candle. The inverted logic is valid for downtrend. How to use indicator Apply it to desired chart and time frame. It works on every time frame. Setup the settings with enabling/disabling visualization of strong up/downtrend zones and trend invalidation line. "Show Strong Bullish/Bearish Trends" and "Show Trend Invalidation Price" checkboxes in the settings. By default they are turned on. Analyze the price action. Indicator colored candle in green if it's more likely that current state is uptrend, in red if downtrend has the high probability to be now. Green zones between two lines showing if current uptrend is likely to be strong. This zone can be used as a high probability support on the uptrend. The red zone show high probability of strong downtrend and can be used as a resistance. White line is showing the level where uptrend or downtrend is going be invalidated according to indicator's algorithm. If current bar is green invalidation line will be below the current price, if red - above the current price. Set up the alerts if it's needed. Indicator has four custom alerts called "Uptrend has been started" when current bar closed as green and the previous was not green, "Downtrend has been started" when current bar closed red and the previous was not red, "Uptrend became strong" if script started printing the green zone "Downtrend became strong" if script started printing the red zone. Disclaimer: Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test indicators before live implementation.

BEST ABCD Pattern Screener Deribit:DVOL BTC DXY scanner Modified this script by Daveatt (based on Ricardo Santos Fractals) to scan patterns in BTCUSD, ETHUSD, DVOL, DXY, DVOL/VV

Swing Points English: The indicator shows the fractals where stop-losses may be located and can be used to trade from their taking. You can adjust the length of the fractal (the number of bars with which it is surrounded on both sides, to confirm the validity). You can also display lines from fractal points for clarity. To keep the chart clean, you can enable deletion of already taken fractals. Example of use with deleted fractals and without lines: Русский: Индикатор показывает фракталы где могут находиться стоп-лоссы и его можно использовать для торговли от их снятия. Можно настраивать длину фрактала (количество баров, которыми он окружен с обеих сторон, для подтверждения валидности). Так же можно выводить линии от фрактальных точек для наглядности. Для сохранения чистоты графика можно включить удаление уже снятых фракталов. Пример использования с удалением снятых фракталов и без линий:

Williams Fractals - LH/HL Same of original Williams Fractals, but with the following changes - changed arrow directions - added option to show Lower Highs and Higher Lows - added alerts for Lower High and Higher Low Enjoy~~