Wise Men Indicator
- Indicators
- Version: 2.6
- Updated: 1 December 2021
- Activations: 10
The indicator displays signals according to the strategy of Bill Williams on a chart:
1. Signal "First Wise Man" is formed when there is a divergent bar with angulation. A bullish divergent bar has a lower minimum and the closing price in its upper half. A bearish divergent bar has a higher maximum and the closing price at the bottom half. Angulation is formed when all three lines of Alligator are intertwined, and the price has gone up significantly(or downwards). A valid bullish/bearish divergent bar (B/D/B) must match AO (Awesome Oscillator) values: Bullish d/b - AO red below "0", Bearish d/b - AO green above "0".
2. Signal "Second Wise Man" shows where you need to enlarge a position if the momentum continues to grow in the chosen direction. (Determined by the indicator Awesome Oscillator (AO))
3. Signal "Blue Light Special" (BLS) shows the point of entry into the market at a lower price than at the moment of the signal.
4. Signal "Third Wise Man" is the third point of entry into the market according to the Bill Williams strategy. When the price moves in the direction of the trend, fractal breakthrough is an important signal. Formed and implemented only after the first two "wise men".
5. Signal "Fractal breakout" - a fractal signal, which is generated outside Alligator. May be the first signal.
6. The indicator displays Angulation lines (if there are any) on the chart when a divergent bar appears. That allows you to visually determine the degree of divergence of prices and Alligator.
Filtering of B/D/B on fractals allows you to find more accurate entry points. A corresponding button is available in the settings.
Description:
- The digit "1" in a green circle - a bullish divergent bar (in red circle - bearish divergent bar);
- The digit "2" in a green circle - signal "Second Wise Man" for long position (in the red circle - a short position signal);
- Square green - signal "Blue Light Special" for long position (red - for short position);
- The digit "3" in a green circle - signal "Third Wise Man" for long position (also signal "Fractal breakout") (in the red circle - a short position signal).
