Larry Williams Trading Strategies in Pocket Option for Long and Short Term

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Genius trader Larry Williams developed many technical indicators and strategies to the financial world. Later, traders used his findings. For example, Williams %R indicator is telling a trader where the current price is relative to the highest high over the last 14 periods. It like Alligator indicator and many others are incorporated into the different strategies and styles. Larry Williams was very successful in financial markets and has many followers. His strategies were based on candlestick patterns and his technical analysis did not involve complicated tools.

Let’s look at the traditional Williams “short-term” and “long-term” strategies and figure out how they work. If you want to try Williams’ strategy in the Pocket Option, select the candlestick chart and the appropriate timeframe in the Settings.

Peak Point Strategy

Williams’s indicators are used for measuring the trend and its strength. So the strategy is based on pinpointing entries. Most traders will wait for a crossover of the zero line before entering a trade but it can be too late. By utilizing the strategy over time you can capitalize on counter trend movements in a way that could easily double your potential profits from any given market movement.

The strategy works well for turbo options. Such trading requires quick decision, so set the timeframe to one minute (M1) and choose a highly volatile asset, for example, EUR/USD or cryptocurrencies.

Williams short term strategy is based on local peak oscillations within 3 bars. His advice is to trade in the direction of the main trend.

During an uptrend, traders should watch for Williams %R indicator to move below -80. When the price starts moving up, and the indicator moves back above -80, it could signal that the uptrend in price is starting again.

Execute the CALL contract on an uptrend if a lower correction peak (lowest price) has been formed, and the next candle closed above the previous one.

During the downtrend when the indicator is above -20, watch for the price to start falling along with the Williams %R moving back below -20 to signal a potential continuation of the downtrend.

Execute the PUT contract on a downtrend if the upper correction peak (highest price) has already been formed, and the next candlestick closed lower than the previous one.

It is recommended to use the strategy for highly volatile asset with the expiration period more than 3 minutes. It should be equal to the time for the formation of three candles on the chart.

Gap Strategy for Long Term Trading

Gap strategy is interesting because it is based on the psychology of traders rather than indicators.

According to Larry Williams, beginning traders tend to overreact to disruptive news and events, especially when the news can explain the direction of the trend. In case of the disruptive news, many traders panic and create chaos by hectic trading. In such situation there will be a small gap on the chart.

The chaos and turmoil cause unpredictability and anxiety so the slightest movement in the opposite direction causes traders change their positions. It looks like the market is torn into different directions.

If you follow Williams’ long-term strategy consider the following steps:

  • Execute the CALL option if at the downtrend candle is lower than the previous one and the market has moved up.

  • Consider the PUT contract during an uptrend, if a new candle is higher than the previous one, and the market has moved down.

The expiration period can be set from 12 to 24 hours.

Most signals require asset prices to return to bullishness or bearishness before signaling an entry. The strength of the up trend a signal that it will continue to at least one more peak which means that the next dip into bearish momentum would be an entry point.

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