ZoneTrade (MT4 indicator)

How to trade with ZoneTrade indicator

The ZoneTrade indicator is written based on the Bill Williams' trading approach, which he calls "trading in the zone".

ZoneTrade indicator helps to maximize/double/triple profits when the market goes your way, namely, when momentum, acceleration and price confirm that you have favorable conditions for trading. Armed with this information you can be more aggressive when trading in the "Zone".

On the chart below:

Green - a buy zone.
Red - a sell zone.
Gray - a neutral/transition zone.

Market Facilitation Index (MFI)

"The MFI is a measure of the market's willingness to move the price. I cannot overemphasize the value of this indicator. It is a more truthful measure of market action than any stochastic, RSI (Relative Strength Index) or other momentum indicator."

Bill Williams

In his book "Trading Chaos" Bill Williams introduces a new method of combining price and volume in order to see the true market development. The key role belongs to unique indicator called the Market Facilitation Index (MFI).

Gator Oscillator

Gator Oscillator helps to visualise the periods when Alligator Indicator lines widen or narrow down.

In order to add Alligator indicator to Metatrader 4 chart:

Go to the upper platform Menu:

Forex Fractals

Fractals - an indicator introduced by Bill Williams.

Simple and versatile, fractals can be used as a stand-alone indicator or in combination with other Forex indicators.

Bill Williams also gives us his approach to using fractals in trading, which we are going to highlight here as well. But before that, let’s touch 

The basics of Fractals indicator

Fractals point tops and bottoms where market reverses.

In order for a fractal to form, there should be a series of 5 consecutive bars where the middle bar will be the highest preceded and followed by two lower neighboring bars on each side:

- a Buy fractal forms at the top of the price wave with the Highest High in the middle and two Lower highs on each side;  

Awesome Oscillator

Awesome Oscillator indicator

Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA.
If to be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows to see the market momentum.

What's "awesome" about the Awesome Oscillator?

Unfortunately, besides the word "awesome" there isn't much to be impressed with.

Forex markets proved to be too unstable for this indicator. On the other hand, if you're trading stocks, Awesome Oscillator will be more interesting to study, since, unlike with currencies, Stock markets sustain longer more stable trends.

Alligator Indicator

Alligator Indicator

Alligator indicator consists of 3 Moving averages:

Alligator’s jaws (blue line) – 13-period Simple Moving Average built from (High+Low)/2, moved into the future by 8 bars;

Alligator’s teeth (red line) - 8-period Simple Moving Average built from (High+Low)/2, moved by 5 bars into the future;

Alligator’s lips (green line) - 5-period Simple Moving Average built from (High+Low)/2, moved by 3 bars into the future.

Bill Williams' Indicators

Bill Williams believed that the cause of the traders losing in the market lies in their extended reliance on the various types of analysis (technical ass well as fundamental), and the rules that's been created upon them. 

B. Williams believed that such rules don't always produce the results, he called them useless and even dangerous, because the market constantly changes and one cannot always rely on patterns and theories used in the past. 

In order to achieve excellence in the trading field, a trader needs to know the very structure of the market.