A short trading tutorial by Alan Solarsh explaining how he uses Bill Williams fractals (arrows) to place buy and sell stops when trading gold (XAUUSD). He describes placing buy limits above/in the middle of fractals, using both buy stop and sell stop to hedge, and notes the method’s roots in Bill Williams' chaos-theory-derived system. He positions himself as a hedge (not scalper) trader who trades similarly to institutions.
Chapters
If you're not using the Bill Williams fractals, you're definitely missing out on a key component of trading. I'm going to start off with gold. You can see that people are saying that the, there's going to be a decrease in the numbers. Okay. Hence the move up a little bit. And what I've done is I've placed a buy stop and a sell stop at the fractals. I use these little arrows here or Bill Williams fractals. And it's a very clever strategy at science. Bill Williams is actually, he's a scientist. It's this system is derived from the chaos theory. And I like to put my buy limits just above or in the middle of those fractals. Let me show you what I've done on my metatrader 4. On my mobile phone, you can see that there's my buy stop and my sell stop. So if it goes up and it breaches that and I'm expecting a bullish move now, it can go wrong. If it goes wrong, it goes wrong. But if the numbers are good and we are in an inflationary market, then you can expect XAU USD to drop and then my sell stop will trigger and I'll be hedged. And that is the strategy that I used to trade. I'm not a scalper, I'm a hedge trader. I trade exactly the same way as the institutions trade.
