Basis for Bill Williams Theory?

[ariel 10]

What is the basis for the Bill Williams theory I heard his indicators are based on the chaos theory, how do exactly these indicators work and more important his theory?

[zdo 20]

Note: Don’t read into the following that I’m saying his material is worthless or untradeable… but!

Re “What is the basis…?” Try taking the a and the s and the i out of word basis

Bill Williams co-opted the word chaos (and got a good piggyback on the ‘fractal’ word, too) because Mandelbrot was all in vogue at the time.

ie his indicators are no more a product of chaos theory than a thousand other algorithms out there.

The indicators attempt to measure supply and demand – what!?! where's the freakn chaos !?!

His 'theory' sorta reminds me of one dry vertebrae of VSA – no skin, no other bones, no meat, no guts, no brain, no blood – just one dry bone.

 

way too harsh... hth

[Ingot54 13]

Note: Don’t read into the following that I’m saying his material is worthless or untradeable… but!

Re “What is the basis…?” Try taking the a and the s and the i out of word basis

Bill Williams co-opted the word chaos (and got a good piggyback on the ‘fractal’ word, too)

because Mandelbrot was all in vogue at the time.

ie his indicators are no more a product of chaos theory than a thousand other algorithms

out there.

The indicators attempt to measure supply and demand – what!?! where's the freakn chaos !?!

His 'theory' sorta reminds me of one dry vertebrae of VSA – no skin, no other bones, no meat,

no guts, no brain, no blood – just one dry bone.

 

way too harsh... hth

I can trade Williams' AC with the addition of another indicator.

 

But I use the higher TF so I get yellow cards instead of red ones when I make an error.

 

ie - the market is more forgiving if you err in the higher TF.

 

I suggest people use what works for them - develop and "own' your own approach - or get hold of

someone else's strategy. Williams is not a bad place to start, but there are better.

 

Main thing is to start somewhere and develop focus and consistency.

 

Become a best-fan of your own approach.

[BlueHorseshoe 10]

where's the freakn chaos !?!

 

I know what you're getting at, however . . .

 

One might well ask "where's the chaos in the highly systematical approach of mechanical trend followers?"

 

And yet a chaotic event of the kind described by Mandlebrot is nothing more than an 'outlier' in statistical terms - precisely the type of event from which true trend followers seek to profit.

 

My point is that "chaotic" market structures (or non-structures) can be exploited through "non-chaotic" (ie systematic) trading approaches. As far as Bill Williams is concerned, I have no idea who he is or of what his approach consists . . .

 

BlueHorseshoe