Setup 92 Larry Williams
- Indicators
- Version: 1.1
- Updated: 12 May 2021
- Activations: 5
Buy and sell signals based on Larry Williams's exponential moving average strategy Setup 9.2 for trend continuation.
How does it work?
The indicator activates the buy signal when a candle closes below the previous low while maintaining the 9 period EMA's upwards.
For a sell signal, we need a candle closing above the previous high while maintaining the 9 period EMA's downwards.
How to use it?
One way of using it, proposed by Larry Williams, is to enter a trade with a buy stop order one tick above the high of the candle with the buy signal, placing the stop loss order one tick below the candle's low. When there's a sell signal instead, place a sell stop order one tick below the low of the candle with the sell signal, and a stop loss one tick above the candle's high.
If the entry stop order is not filled on the next candle but the 9 period EMA maintained its direction, the signal is still valid and the indicator will confirm it. One should then reposition the entry stop order one tick above the new high for buying and one tick below the new low for selling.
If the 9 period EMA turns, the entry signal is cancelled.
If filled, the arrow will change color and it is possible then to trail the stop loss order based on the 9 period EMA and exit the trade when it turns.
Tip:
Great for entering on a trend. You can avoid entering when a longer period moving average (e.g. 50) is in front of the movement or it shows signs of exhaustion.
Advantages:
- Repeats entry signals while they remain valid.
- Allows different colors for activated signals, so you can visually analyze the strategy on past prices.
- Lets you change the type of arrow so you don't confuse with other indicators already in use.
- Can ring an alarm to draw your attention when there's an entry signal.
- Can pop an alert on the platform to inform you when there's an entry signal.
- Can send a push notification on your smartphone when there's an entry signal.
Features you can edit to your preference:
- Distance between the arrow signals and the candle's high/low
- Type of the Buy and Sell signal arrows, based on the Wingdings font
- Color and size of the Buy and Sell signal arrows
- Color, thickness and style of the exponential moving average
- Enable push notifications
- Enable pop-up alerts
- Enable sound alarms
- Sound of the alarm
Who is the creator?
Larry Williams is an American stock and commodity trader, author of 11 books and creator of indicators such as the "Williams%R" and the "Ultimate Oscillator", with over 60 years of trading experience.
Won the 1987 World Cup Championship of Futures Trading, turning $10,000 to over $1,100,000 in 12 months with real money. Ten years later, his daughter Michelle Williams won the same competition.
Keywords: Setup 9.2, Setup Larry Williams, Palex, MOL, Lorenz, Ogro, RM.
