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ramon barros wrote:
>
> Hi
>
> The way I interpret his book, his fractals are no
> more than pivot highs and lows.
>
> regards
>
> ray
>
> R Barros
> 101/25 Market Street
> Sydney NSW 2000
> Australia
>
> e-mail: ramon@xxxxxxxxx
> tel: 61 2 92673470
> fax: 61 2 92673478
> ----------
> From: Carl Epp <carl@xxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Bill Williams
> Date: Friday, January 16, 1998 7:42 AM
>
> Hello RealTraders, are you out there, and if you are, do you know what
> defines a Bill Williams' < Fractal>?
They are 2 bar pivots. That is a 1 bar pivot does not count as a
fractal. Also the Fractal has to have "leverage" to be still considered
live. Say you have a swing high then a swing low then a swing high that
takes out the prior swing high then leverage has been lost therefore you
would not trade a breakout of the swing low if the market then fell.
To trade them you trade breakouts of fractals with leverage. It is
really another form of breakout trading. Mostly moves stall or retrace
after breakouts. Probably 20-30% of breakouts follow through
immediately. I think trading breakouts requires a lot of real world
experience if you are to get better odds than 20-30%.
At the absolute minimum you would only look to take these trades in the
direction of what you assume to be the trend in force.
Beware hand picked examples that illustrate any approach.
Prior posts by Ray and others outline far superior approchhes to
trading.
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