Is anyone familiar with Bill Williams fractal method with 13-8, 8-5, 5-3 displaced smooth moving averages? Any comments on trading this system on the Nasdaq E-minis on a 3 minute time frame?
Actually you might consider fading it. I havent tested the fading, but I suspect there might be an edge in it cause intraday SP and NQ are real choppy most of the time. So try fading it, if that has no edge either, add B. Williams to your personal list of crooky vendors.
Go to a book store and read it. Will take you 10 minutes to digest everything. It's nothing more than a trend following method in the disguise of chaos theory. His book has just one general chapter on very basics of chaos theory and that's it. It's as if he had just written a generic book on trading and decided to slap an intro to chaos chapter so he could use "chaos" in the title. Also some basic treatement on basic MACD and momentum strategies called the "awesome oscillator".
... and waste of money... ____ U gotta trade your own methods. Something you are comfortable with and something you really understand. Everybody wants your money! Book authors, brokers and people you don't even know...
Yep - this was the second trading book I ever bought. Overpriced -simplistic Psychobable couched in cute language. doher
contrary to your other replies ,as a former floor broker I know many guys who use the fractals for short term trading .They are also known as swing points to other authors . To keep it simple you just look for consolidation and use the fractals as entry and exit points .It also excellent for pyramiding for the big range days . i would suggest trying differnt time frames for what you are comfortable with and maybe using the e-mini sp instead . Good Luck