The Not So Perfect but Perfect System

I am trying out the chaos theory on s demo account to see if i can really get the hang of it.
Just reading the book makes me feel i have grasped and understood what bill williams is saying but i need to find out for myself if that works or not, set the rules for myself. Basically the groundwork aka foundation.

i'd appreciate any comments from anyone regarding this system and feel free to let me know where i am going wrong.

In the Below chart USDCHF we see there was a valid Bearish Divergence and a position shpould have been taken but i missed it as i didnt read the book at that time .. hehe

Anyway .. i have made a mistake on the chart calling the bearish divergence bar a bullish divergence.

Chart Says.
There was a Bearish Divergence there and a position should have been taken because of the angulation shown.
then there was the 2nd wiseman signal with 3 AO bars
Further down there was a fractal entry and then another

now .. there should be a possible entry for a short at 1.1292
with my SL at 1.1353 which is a high of 5 bars.
( i am still confused about the SL's i might have missed it, but i read the book later(again))

I know this trade is a little late but the reason for it is that
Gator is widening and going green which means that aligator would be opening up (his mouth i mean) the AC (acceleration) is greening up as well as the price is moving south and the AO is red waiting for the 3rd bar.


order did not fill but was a good one.

Something that i just noticed on the EURUSD 1 hour chart.

There is a Bearish divergence and that should have been a point of entry.
But entered on the 2nd wise man. i home it isnt too late.

i can see the market has lost its momentum to its upside on the AO and the acceleration to the downside has increased. the Gaot closing him mouth

fantastic trade i think .

SL @ 1.4311

Closed Trade for 95 pip profit.
Wasnt sure about the market.

It seems like it could be rising from now on ... The only indicator that is suggesting a slow down in the trent is the Acceleration (AC)
Its green at the moment which means that the trend could be reversing.

Somethings that i do need to learn is Dicipline.
I could have waited in untill i had a signal following the theory. In this way i have basically takin my profits early and let go the rest of them if there were any.


for now +95 pips

relating to the above trade.

EUR USD
I think that 3rd alst candle there was a bullish divergence. (1st Wise Man)

I should have spotted it.
I will wait for the 2nd wise man now.

Hi has any one got this chaos stuff in PDF format. Heard a lot about it and would like to check it out.

Oil seems to have given a Bullish divergence.
I will wait for confirmation before going in on oil as it is very volatile

Oil is looking to move up in the next few hours. It would be interesting to see if it does.
i will wait for the 2nd wise man to place my LONG

Hmm, I dont know. I got the book from amazon and it costed me £25. Worth the money.

Its an interesting system

Will have a look. Anybody want to sell a used book? Contact me.

Some missed opportunity on the 5 minute chart

very little risk on this trade.

there was an entry at 773.9 and SL at 772.5 . missed it.

As price is bullish on this chart on a longer timeframe i will look to reenter when market consolidates

Heres one that i have caught on the GBPUSD at 10 am on the 1 hour timeframe. I know i shouldnt be using any timeframe lower then 4 hour but i am just testing my results

Reasons for taking this trade.
1. Its got the required angulation
2. there is a bullish divergent bar
3. Acceleration has moved to the other side of the trend

Entry at 1.7982
SL at 1.7909 (Just 1 pip below the D Bar)

Lets wait and watch!

Profit 300 pips. Not too bad.
Stop and reverse on the D Bar SEE BELOW

Week 1
319 pips Profit ( 300 + 95 - 76)

Stop and reverse on the D Bar

Reasons for taking this trade
1. There is a Dbar
2. There is angulation

Although accelertation hasnt decreased i m a little sceptical about this trade.

Lets see. I should have taken the 2nd wiseman. but instead i think this would start to consolidate as it is a 1 hour chart.
If it was a 4 hour chart i think i woudl have waited for the 2nd wise man

76 pip loss. Went in too early with doubts in my mind. Lesson Learnt.

A little bad trade earlier on the GBP USD. As i said it was a bad trade as i wasnt sure and i shouldnt have taken it. Lesson Learnt. The Acceleration did not slow down and i should have kept out.

BUT now the acceleration has slowed down and the Bearish divergent bar can be seen on the 1 Hour Charts.

Reasons to take this trade
1. Good Angulation
2. Bearish Divergent Bar
3. Acceleration slowed down and in red.

Short Order at 1.8353
Stop Loss at 1.8386

I am imagining that the market would gap down

Hi there,


have you found the MFI by Williams any use in your trading?