Bill Williams Fractals

Alan Solos here, the passive income guru in this video tutorial is going to show you how I made 56% return on investment in less than 20 days.

Right? So I'm going to introduce to you a concept called fractals created by a scientist known as Bill Williams. So what we're going to do is we're going to add these Bill Williams indicators to the chart and then I'm going to explain to you how they work and how I opened my trades and make made this profit yesterday. Right? So what you need to do in the top of your MT4 on your phone is an F if you're on the charts. So please go to the chart section and click on the F and in the section in the main window section over here, just click on the main window, scroll down to the bottom where it says Bill Williams and then click on the fractals. So please pause the video, go and do those steps. Now once done, you can come back to this video and resume the video. So I've chosen my style, my color is purple. And then I clicked on the done button. So go and do that step and then come back to this video and resume the video. And as you can see, the fractals have now been added to the chart, which is a little arrow over here. So let's go and add the other indicators to the chart, which is the CCI and the AO. So you can just click on Indicator Window 1 and then you can click on the awesome oscillator and then you can just click on done. So please pause the video, go and do those steps.

Now once done, you can come back.

To this video and resume the video. The next step is to click on the F and then click on the Indicator Window 2. And then just click on the. Sorry, the CCR. So at the top here it says here commodity channel index over there. So please click on that. And then you can click on the I change my colors to yellow, you can change it to whatever color you want. And in the pixel section I like to choose four so that it's bright and I can see it nicely on my screen. That pops out of my screen. And then you can click on save and then done. So please pause the video, go and do those steps.

Now once done, you can come back.

To this video and resume the video. Not any stage that you feel that I've gone too fast, just pause the video, rewind, go and do those steps and keep up with me so that you don't miss any of the steps. Okay, so now that we've added the, the indicators to the chart. We can now start understanding what these indicators are. Great. So see that my profit. I just made some profits. So there it is. Let's go over there. You can see, see, let's do for today. My EA just made me a quick 79 for the day which I'm very, very excited about. So if you don't have my ea, I think you should get it. So this, this is the link where you need to go to go and check my EA and go and invest in it and start making some passive income. So if you can't afford the ea, this is what this video is about on how to start, start making some exponential money so that you can eventually buy the EA and not trade manually or do a combination of both manual and automated trading. Great. So let's go and check out what, what, what I did and how I made this thousand and fifty nine dollars yesterday. So let's show you that I made the thousand and fifty nine dollars yesterday. Today, today's the 27th. Yesterday was the 26th and as you can see, there it is. I made a thousand and fifty one dollars. This is a center count. So you move the decimal place two places from right to left to get to understand.

You know the numbers. So it's a center count. I made a thousand and fifty one dollars which was approximately 19.3% return on investment on my account. So I dropped some cash in this account on the 6th of March. So let's go to the 6th of March, 6th of March and we'll go there to the 6th of March and you'll see there that I dropped in 5,400, $5,330. That's what I dropped into this account. Okay, so if we take the calculator, 1051 divided by 5330 equals times 100 made 19.71% return on investment in one day using the system. And I'm going to teach you how to use it. I hope you're excited. Let's get started. Right, so we're going to go to the chart and we're going to start analyzing the chart. But first what I'm going to do is I'm just going to go to my trades for yesterday. So let's just go do that and show you when I entered the trades. So we're going to go to the 26th and the 26th and show you exactly how I entered these trades. So firstly I needed to understand that the, the trend had changed. So how do we know when the trend has changed. We know when the trend has changed when the second candle opens above the 8 exponential moving average. So here's the chart. And over here, this is when I started entering the, the trend. Let's go to the charts over here. I can just go to the H4, I work on H4 chart. And you can see that after this long downtrend over here. So we had this massive downtrend and then we had a sideways move and then the second candle opened.

Above the 8 exponential moving average. When did I, when did I. You can see that here's the first candle that opened above the 8 exponential moving average. And here is the second candle that opened above the exponent 8 exponential moving average. And that is when I knew that the trend had turned to the positive, especially that the candle had broken the, the two highest peaks of these two weeks over here. And I knew that this structure had been broken and I knew that we were in an uptrend. The candle obviously retraced back down, it broke below. And then we started to get that, that forward momentum again where the second candle opened up. And then we were fully into the.

The bull trend. Okay, so when did I implement my first trade and how did I implement my first trade? So firstly, Bill Williams says that. Well, let's discuss what a fractal is. A fractal is like your hand, okay? You've got a peak and then you've got two lower lows and two higher highs, okay? And that's basically what a fractal is. And the fractal forms automatically on your chart. So there's different types of fractals and that form. We don't have to know how they operate or what they are. We just need to know that they've arrived on the chart and we need to take action.

So I now went to my chart.

And I then checked, checked that there was a fractal over here that had formed. And he says that when you, when is it time to enter the fractal or to enter the trade? The time to enter the trade is at the top of this, of this triangle which is 1 pip above when the fractal forms. Okay, So I basically entered the trade over here. As you can see, this is when I entered the trade. I entered the trade 1.08271. So it's. When was it? 1.08271. So entered it about. About. Yes. So the price went up, it came down, came down to about here. And this is where I entered into my. It 1.08260. So it was about a couple of pips above that. It was 1.1 pips above this dotted line. So it was about there that I entered into my first trade and I entered on a lot size of 10. So the question is what is the lot size that you need to use? And there's a great calculator called baby pips.com tools position size calculator and it'll tell you basically what size lot size you should use. So I used a a lot size of 10. And the reason I use the lot size of 10 is because that is the amount of money that I'm comfortable with trading at the moment. Okay. So the drawdown isn't that massive for me. It goes between 30 and $50. When it gets to about 10 or 20 pips which is usually the stop loss. And I'm comfortable for it to go to about 30 to 40 pips, which is about 60 to $70 and loss. And you know me knowing how to read the forex chart and I knew that we were in a bull trend. If it dropped down there, let's entered over here and it dropped down there. It was quite a significant drop. So where was it? It's 1.826 and then over here it is 47. So it is about, so from, from the peak over here to the low is about 105 pips. But that's not when I entered the trade. I entered the trade when it had come up a bit and I saw that we were back in the bull run and I entered the trade over there. So it came down about 30 or 40 pips and I was comfortable with that loss. And then we went into the bull run. Okay, Right. So then I changed over to the 15 minute chart and I started to follow when the fractals formed when the pip when, when the price was 1 pip above the fractal, I then opened another trade. So if we look at my, my history over here, you can see the different trades that I open. Every time there is a 20, that's when I open up a new trade as that is when the new fractals form. So let's go to the last three fractals that formed on the 15 minute chart and I'll show you why I entered those, those trades so that I entered a trade 109520. So if we go to the 15 minute chart, 109520. So let's just change this, this one over here to 109520. So here it is. Here's the 109520 and as you can see that into the trade over there. And I shouldn't have entered it over there, I should have actually placed my order one pip above the the entry. But I think what happened was, is that the price went down and then it peaked and then it came down and that's when I entered the trade. So let's have a look at the, the next one which is 10962 sorry 10990210902 and I did the same thing over here. The price peaked above it dropped down and then I entered the trade over here and then later on I decided to open up some buy limits and sell limits, which is what I'm doing now. Which as you can see there's a buy stop. Sorry, a buy stop or a sell stop. So what, why have I done that? Why have I opened the bar stop or place my bar stop? As you can see the price is on the 200. So last night I was tired, it was the end of the day. I saw that there was a spinning top, I thought that there was going to be a doji. I'd made my thousand and fifty two dollars and I thought, you know what, let me just get out of the trade, have a good night's rest and then tomorrow if the trend continues, I will then.

I'll then enter into the market again. So as you can see here, the price peaked above the the 100 moving average. So the structure had been broken. And actually if you go to the 15 minute chart you can see that a, a new fractal has formed. So the fractal is formed over here. So when will I enter the trade? I'll enter the trade one pip above this fractal. So that would be at 1.10886. And that is where I placed my, my, my bar stop which is 108660. So how do you place a bar stop? It's very, very simple. You click on the plus sign in the top right hand corner of the chart, make sure that you're on euro US dollar. In where it says Buy Stop you can click on buy Stop and a drop down menu appears. And this is where you can choose Bar Stop. Okay, so you click on the bar stop and then it gives you the different options. And in the section over here where it says price, you can then set your price to what you want and then you can click on the place order and it's very, very simple. You just do it that way. And then your bar stop is formed. And when the price then breaks above this level one pip above this level, you will then carry on into your bull run and start making some more exponential growth. So now the next question is when do you exit this trade? So you exit this trade when you have a fractal in the down, when your first fractal appears in the down position. Okay, when this fractal appears, you will then exit the trade. Okay, Now I wouldn't exit the trade yet because on the H4 I still know and I'm fairly sure that we're still in a bull run. The price is just retracing back to the 8 exponential moving average and then possibly the next candle will go north. There's a few announcement, two announcements today which are negative for the Euro US dollar which means that the price is going to go well. There's negative announcements for the US dollar which means that the price of the euro US dollar is going to continue in its bull run. It is Friday. So I know that a lot of people are going to be exiting their positions on a Friday due to the fact that they don't want to pay swap fees. So it's very important to know all of these facts so that you can give yourself a chance and stack the odds in your favor. Okay, so let me just click on there on those to remove my dots so that I don't move my lines. And we're going to go back to the 15 minute chart and discuss when is the right time to exit the trade. So your fractal has formed, you're in a long position, close out all your long positions and when the price breaks one pipe below this, the point of the fractal, that is when you will enter into your sell position. But I know that we're not in a a short yet on the, on the Euro US Dollar. So when will I start shorting the Euro US Dollar? Very, very simple. I'll check that on the H4 chart. And when the, the candle opens below the 8 exponential moving average, that's when the second candle when the second candle opens below the 8 exponential moving Average, that is when I will then enter into a short. I will then go back to the 15 minute time frame and then I will start looking for my fractals. When the fractal forms, I will then place my buy stop, my sell stops 1 pip below the peak of the fractal and then I will enter those trades. Very, very simple to do. Very, very simple to follow and implement. And I highly recommend that you Follow the strategy. This, this is so simple. I mean, you know, if you don't want to learn how to read or understand candles, if you don't want to and you're a little bit not convinced about the moving averages, okay, then this, this system is as clear as day for you. Actually can't get clear and actually can't be, call me simpler. So implement the strategy, test it on a demo account on 0.01 lot size, start understanding your psychology and the fear of when is the right when you start getting fearful of your drawdown and then you can start increasing your lot size according to your, your fear factor. Basically there's one more thing to, to speak about which is the oscillators. So what are these other oscillators that we're looking at that we implemented over here? So the CCI is basically your, like a stochastic, but it's better. And your, your, your awesome oscillator basically tells you the strength of the, of the move. Now this is where candlestick analysis and my moving averages come into play for me. Although it's all green here, I saw the doji and I thought, you know what, let me take my profit and I made the right decision. And that was decision decision that I took. So according to Bill Williams, when you see three red lines in a row, it basically means that the trend has changed. And when the graph has gone from above the 100 to below the 100, as you can see over here, it's starting to descend past the 100 line. Then you know that the trend has changed. But these are not for me predictive indicators, they lagging indicators. You'll only see the. We've already got the first red candle and there's no red candle over here. You'll only get the red candle when this candle closes. And that for me, the three candles form forming in red will plot over here on this chart, which means that you've already lost money here. And with the, with knowing the candlestick analysis and the doji, I've already saved many, many pips and a lot of my profits. So for me that was the right decision. If the, if there is, if it goes north and this oscillator carries on going green, then I've only lost out on a couple of pips because I exited over here and which is 23 pips. So let's call it 23 and I'll re. Enter over here which is about 60, 65 pips that I will have lost. It is a big move. But I'd rather have the, the profit in, in my pocket. A lot of people like to follow the Bill Williams oscillator and the ccr. And you know, if the, if the trend hasn't changed and you've still got green, then they say just remain in, in the, in the trade. So for me, I, I would just prefer to use all, you know, my candlestick analysis together with my moving averages, which has worked for me. You need to use whatever works for you. So I hope that you enjoyed this video. Take action. Use the system and if you enjoyed this video, then follow the steps and.

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