Discussing the article: "Larry Williams Market Secrets (Part 6): Measuring Volatility Breakouts Using Market Swings"

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Check out the new article: Larry Williams Market Secrets (Part 6): Measuring Volatility Breakouts Using Market Swings.

This article demonstrates how to design and implement a Larry Williams volatility breakout Expert Advisor in MQL5, covering swing-range measurement, entry-level projection, risk-based position sizing, and backtesting on real market data.

Larry Williams proposes an alternative way of estimating short-term volatility by measuring recent price swings rather than relying on indicators such as ATR or standard deviation. The core idea is simple: recent directional price movement provides a practical estimate of how far the market can move in the next session.

Instead of measuring a single swing, two different swing distances are calculated using price data from the previous completed bars. These swings are evaluated at the moment a new bar opens, before any trading decisions are made.

Larry defines two explicit swing measurements. The first swing measures the distance from the high recorded three trading days ago to the low of the most recently completed day.

This captures the extent of downward price displacement across the recent trading window.

The second swing measures the distance from the high recorded one trading day ago (the bar immediately preceding the most recent one) to the low recorded three trading days ago.

This captures the opposing directional movement within the same three-day structure.

Author: Chacha Ian Maroa