Williams’ Strategy
Bill Williams is the creator of some of the most popular market indicators: Awesome Oscillator, Fractals, Alligator, and Gator.
Counter-Trend Impulse Strategy
2024-03-26 • Updated
Information is not investment advice
Counter-trend strategies are always the most dangerous but also the most profitable. We are pleased to present an excellent counter-trend strategy for working in any market and with any assets.
Strategy setups
Instruments: any
Indicators: Bollinger Bands and RSI with the default settings
Timeframe: >30M
Risk management rules: Fixed trade volume with 0.1 lot.
Rules for a long entry
- Wait for the price to move out of the lower Bollinger Band and start to move back in. The more the price moves out of, the lower Bollinger Band, the better.
- Simultaneously, the RSI indicator line must cross its lower boundary upwards (enter the working area from the oversold zone).
It is recommended to use the Stop Loss at the level of the nearest local minimum before receiving the signal.
Rules for a short entry
- Wait for the price to move out of the upper Bollinger Band and start to move back in. The more the price goes beyond the upper band - the better.
- Simultaneously, the RSI indicator line must cross its upper boundary downwards (enter the working area from the overbought zone).
It is recommended to use a Stop Loss at the level of the nearest local maximum before receiving the signal.
Rules for a Take Profit
- The choice of Take Profit is possible based on the ratio 3:1, i.e., a trade should bring 3 points of profit for one lost profit point.
- The trade can be closed before the Take Profit when the Bollinger Bands midline is reached.
Important remarks
When looking for signals, paying attention to how the price leaves the level of the upper or lower Bollinger Band is essential. Ideally, if the price goes the band completely before the signal appears, such a movement is strongly impulsive, i.e., there is a kind of compression of a spring, which uncompresses later, taking the price in the opposite direction.
Legal disclaimer: The content of this material is a marketing communication, and not independent investment advice or research. The material is provided as general market information and/or market commentary. Nothing in this material is or should be considered to be legal, financial, investment or other advice on which reliance should be placed. No opinion included in the material constitutes a recommendation by Tradestone Ltd or the author that any particular investment security, transaction or investment strategy is suitable for any specific person. All information is indicative and subject to change without notice and may be out of date at any given time. Neither Tradestone Ltd nor the author of this material shall be responsible for any loss you may incur, either directly or indirectly, arising from any investment based on any information contained herein. You should always seek independent advice suitable to your needs.
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