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# Averages > ABillW_3Lines

File Includes:

Indicator - ABillW_3Lines
Indicator - ABillW_AC
Indicator - ABillW_ActiveFractal
Indicator - ABillW_AO
Indicator - ABillW_FractalLine
Indicator - ABillW_Alligator

Category: Indicator > Averages

Description:

This indicator is based on Bill Williams` recommendations from his book "New Trading Dimensions". We recommend this book to you as most useful reading.
The wisdom, technical expertise, and skillful teaching style of Williams make it a truly revolutionary-level source. A must-have new book for stock and commodity traders.

The 1st 2 chapters are somewhat of ramble where the author describes the "metaphysics" of trading. Still some good ideas are offered. The book references chaos theory, and leaves it up to the reader to believe whether "supercomputers" were used in formulating the various trading methods (the author wants to come across as an applied mathemetician, but he sure looks like a stock trader). There isn't any obvious connection with Chaos Theory - но не смотря на the weak link between the title and content, the trading methodologies do work. Most readers считают the author's systems to be a perfect filter and trigger for a short term trading system. He states a goal of 10%/month, but when these filters & axioms are correctly combined with a good momentum system, much more is a probable result.

There's better written & more informative books out there for less money, but this author does have the "Holy Grail" of stock trading. A set of filters, axioms, and methods which are the "missing link" for any trading system which is based upon conventional indicators.

The indicator plots three moving averages based on the Median Price (High+Low/2) for 13, 8 and 5 days with 8, 5 and 3 days. displacement respectively:

Usage:

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between several moving averages).

EasyLanguage Code:
```VALUE0=(H+L)/2;

{BALANCE LINES}
VALUE1=AVERAGE(VALUE0,13)[8];
VALUE2=AVERAGE(VALUE0,8)[5];
VALUE3=AVERAGE(VALUE0,5)[3];

IF CURRENTBAR>=21 THEN
BEGIN
PLOT1(VALUE1,"BLBLUE");
PLOT2(VALUE2,"BLRED");
PLOT3(VALUE3,"BLGREEN");
END;```