239# Profitunity (Chaos) Trading System by Bill Williams
Submit by MACK
On the chart apply following tools
Alligator - Three SMAs (13/8/5) with a future offset of 8/5/3 respactively.
Fractals - 5 bars sequence where middle one has highest High / lowest Low and its preceded and followed two bars have lower highs / higher lows
preceded by two lower highs and is followed by two lower highs
Awesome Oscillator (AO) - difference between the 34-period and 5-period simple moving averages of the bar's midpoints (H+L)/2
Acceleration Oscillator (AC) - difference between 5/34 momentum histogram (AO) and a 5-bar simple moving average on the AO
When (Alligator) lines are opening we put a buy stop one point above the most recent fractal outside of the lines in trend direction
When (Alligator) lines are closing we are closing too.
we stay out of the market when and while lines are intertwining.
After the first fractal is taken, we take any and every signal in that direction.
we go long when AO cross zero line from negative to positive values and short on the opposite scenario.
we go long we have 3 consecutive AO bars above zero line last two having higher highs (i.e. AO pulls back for a while)
- opposite for sell
Go long after two consecutive bars above zero line
Go long after three consecutive bars below zero line -
for short - reverse scenario
In the pictures Profitunity (Chaos) forex system in action.
Chaos Analysis Forex Trading
Share your opinion, can help everyone to understand the forex strategy.
Fractal Forex Strategies