Trading System using Awesome Oscillator

I'm trying to design a trading plan. I came upon this forum on Thursday and I tried it on the GBPUSD. It actually worked. I know it was only once but it got me interested and I wanted to learn more about this 'Bill Williams' person. I read materials on all five stages and I think I understand all except the last one about 'balance line trades'

I found the one blair listed to be straight forward but I'm not sure I'm 100% clear on the entry signal. For example, would I enter if the AO changes to green and the AC has 2 previous green histograms even if the green candle on the AO is below the zero line?

Could someone...anyone...please clear that up?

Pipcahontas:

If you haven't already read Bill Williams' book, New Trading Dimensions, doing so would probably be very helpful to you. The trading method you described is very similar to what Bill calls Trading in the Zones--it is the 4th of his 5 trading dimensions. He also refers to it "an absolute MAP for profits." MAP stands for Momentum, Acceleration, and Price.

You said you have been trading in the 4-hour time frame, so I would strongly recommend you put his "Alligator" and "Fractal" indicators on your charts as well. The Alligator blue line would then be telling you where price would be if there were no new incoming information impacting your H4 chart. The red line would be telling you where that Balance Line is for one significant time frame lower (roughly the H1 chart in your case), and the green line would be where that Balance line is for yet another significant time frame lower (in your case, about the M15 chart). This gives you the Triple Screen look so popular with multiple time frame (MTF) devotees. With the Alligator in place, look only for buy setups if the last completed price bar closed above the red line; and look only for sell setups if that last completed price bar closed below the red line.

Back in my commodities trading life, this was my bread and butter methodology for the last 4-5 years. I transitioned to the retail spot Forex markets in 2004, and felt the Williams Profitunity package was bit too slow for my Forex trading style (intraday).

Keep looking for what works best for you!

~larry.bye

...Back in my commodities trading life, this was my bread and butter methodology for the last 4-5 years. I transitioned to the retail spot Forex markets in 2004, and felt the Williams Profitunity package was bit too slow for my Forex trading style (intraday).

Keep looking for what works best for you!

~larry.bye[/quote]

Dlftrader,

I noticed that the system was kind of slow with regards to intraday trading which is the type of trading I am most comfortable with. However I thought I was just being impatient. I was even trying to find out if anyone else uses it for intraday thru google but I haven't gotten anything so far.

Is there a particular plan that you currently use that has been working for you. I know we each have to develop our own system but getting a basic framework would help me out a lot. I am new at this and although I understand the basics, I'm not sure what trading plans to use or how to move forward with my foundation.

I tried using 'price action' only where I would just trade based on the price itself, but I've come to realize that that system, although it may work, it's too advanced for me I wanna take baby steps and move up to that type of trading when I'm a bit more comfortable.

So could you give me a recommendation please?????

Many thanks

Pipcahontas:

If you are not comfortable running naked with a PDFT (price driven forex trading) method, and your broker provides the MetaTrader4 trading platform, take a look at the Synergy Method at http://compassfx.com/. The basic version is FREE. They want big bucks for the Advanced version, but all you get are more indicators (information overload?). Free version is very robust and well documented (eBook, daily training videos that have been archived since their launch), and it's all FREE. It would be my first recommendation for someone who wants strong indicator and hand-holding support.

Go to http://captaincurrency.blogspot.com for a very simple but very sound multi-time-frame (MTF) method. It is a great PDFT example, although it doesn't trade as often as I would like!

I am running short on time this morning--will be at a hospital most of the day in support of family and friends of a little 5 year old girl who is having tumor surgery on her brain, but I will share some more food for thought with you later this week.

~larry.bye

I'm sure everything will go well with the surgery. It's so sad when children have to go through such a serious ordeal. My heart goes out to you and the other families and friends. I know it must be quite a scary time for you guys and, especially for the little girl.

Take your time. I have appreciated you help so far

Cassy.

The brain surgery went went well (less time on the table than anticipated!), and her doctors said the tumor appeared to be benign! Thanks for sharing our concern, Cassy.

I notice that this thread was launched at the end of Jan 2007, and that your post on 11/15 this year was the thread's first activity 10 months. It obviously is not attracting much interest! How would you feel about taking our discussion off forum? Primary advantage to doing that would be that I could be a little more specific in helping you without running the risk of tripping over forum rules or copyright laws. If that would be ok with you, respond to [email protected].

Give me some feedback on the Synergy and 3 Ducks methods. Did one or both scratch any of your trading itches?

~larry.bye

Hi dlftrader, I am one of the many lurkers out there (who naturally share your concerns) and would hate to see you vanishing again.
Before you do so, would you mind to share your experience and opinions on TC2 vs. New Dimenns and both vs. Fractals Edge?
Concerning the first question it seems to me that New Dimns (Profitunity) is concentrating on the wave using many detailed improvements of the trade ( like saucer, Zone...) whilst TC2 is giving more attention to pre-wave facts (DBs) and trading the wave, albeit less detailed -just fractals and SAOs.
I wonder, if BW changed his theory, or made TC2 just more KISS (reducing to 4WiseMen) - but teaching the additional elements of NDs in his course as an exclusive add on.

Regards an all the best (especially for brave patients)

Forex37

Forex37:

I can't remember the details re FE, but I do remember my general impression of FE vs Profitunity--that FE tweaked the Profitunity methodology in a good way--it gave some profitable improvements.

NTD was an improvement over TC for me; but I got a lot of value from reading the two books as Part 1 and Part 2 of one book.

The only justification for a TC2 was the 1st Wiseman; Profitunity needed a way to get into a reversal early. I wasn't at all impressed with the 2nd Wiseman; and the 3rd Wiseman was basicly just a reprint from the first two books. TC2 was a big disappointment for me!

~larry.bye
Remember, nobody knows as much as you think they do, and that includes my stuff!

Thanks for your kind reply. Unfortunately the www, which is said to never forget, has completely lost informations regarding TFE!!

I wonder if you know (or remember) the parameters of their Alligator version, AO and AC. I read in the TFE documentation, that their versions are different from BW and without future offsets.

Hope everything (and -body) is going a good way. Regards from ol`europe

Forex37

Forex37:

The Herberts (Sr. and Jr.) surfaced re Hillsboro OR, The Fractals Edge, and Quantum Futures; but all web links failed. I occassionally get an email from Quantum Futures or one of the Herberts, so I will pay more attention next time.

~larry.bye

Here is another system using the Awesome Oscillator. See attachment.

It was a freely-distributable ebook I found online.

Thanks, Ganglion, for finding Victor Chan Wai-To's ebook (The Awesome Trading System). Since 1998, Bill Williams has been a key contributor to my trading methodologies (futures and Forex). I recently started some R&D work with the AO and AC in an intraday model, so I am anxious to digest the ebook and put its approach into my mix. I'll post this work in this thread if it proves to have strong profit probability for my trading mantra: Get in - Get out - Go do something else!

AO provides entry signal ... but how should I exit or stop loss ?

Hope this help.

Popeye

thank you popeye thats clear for me for the exit strategy,

I have another question about AO.

Here I found that AO was crossed and the signal buy is above 1232.
the price however retracted and the AO keep increasing ....

my question is: should I keep my buying stop abve 1232 ?
or when there is another buying signal (may be saucer buy) ... the buy stop above 1232 should be cancelled ?

thank you ...

http://img836.imageshack.us/img836/8...0819081629.png

Thanks Ganglion for the system. Awesome gives results close to MACD (5,34,1). The indicator is also nice for divergence trading. I once gave an explanation on what I think about it. In short, you wait for divergence and check if price goes the right way on a higher timeframe. You can also wait afterwards for a break of support/resistance for another confirmation before entering. Here's a video on a similar strategy with stochastic. Also, I would only enter if the risk/reward is higher than 1 (better 1.5).

Here's a cherry picked example that occured a few minutes ago. First divergence, second good direction in higher timeframe and third break of resistance. The risk/reward ratio is 1 in this case. It is better to wait for a strong divergence signal. It doesn't happen that often, but with all available pairs and TF's there should be enough opportunities.

http://i33.tinypic.com/afkk08.jpg

Here is the homepage of the Awesome Trading System

https://sites.google.com/site/theawe...ingsystem/home

I found another thread, putting importance on Bill William's indicator. Hope it helps. http://www.forexfactory.com/showthread.php?t=288245

I'm using AO to trade m5 and m15.

Using H4 AO and M30 AO to spot trend, and enter using M5. When 3 chart AO matched. Enter using M5.

For M15, using day chart AO and H4 AO.