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# Fractals > ABillW_FractalLine

File Includes:
Indicator - ABillW_FractalLine
Indicator - ABillW_3Lines
Indicator - ABillW_AC
Indicator - ABillW_ActiveFractal
Indicator - ABillW_AO
Indicator - ABillW_Alligator

Category: Indicator > Fractals

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.

Usage:

According to Bill Willams one should enter the market after a new price top (for long positions) or bottom (for short positions) has been penetrated. The identification of such a condition is based on determinig the validity of a fractal formation, where an upward fractal is identified when at least three consequent values are tops and after the local top at least two bars show a descent. So the model needs at least 5 bars of which the middle is the local top (upward fractal) or bottom (downward fractal).

In accordance with this entry concept stop orders, triggered after the price crosses a certain preset level are usually posted, which identifies the conditions of previos price channel breakthrough. This indicator is meant to display those levels, relative to which the decision on the channel breakthrough is made.

Inputs:

Strength - specifies required number of bars on either side of swing bar

EasyLanguage Code:
INPUTS:		STRENGTH(2);

VALUE1=SWINGHIGH(1,H,STRENGTH,80);
VALUE2=SWINGLOW(1,L,STRENGTH,80);