Forex Basics

Bill Williams – Psychological Analyst, Author, and Trader

Bill Williams is well-known in the forex industry because of his input from an educated psychological standpoint and because he has created multiple trading indicators. Here are a few facts about him.

  • Bill Williams has received a bachelor’s degree in Engineering Physics and a doctorate in Psychology. This helped him to gain a better understanding of trading psychology.
  • The influential author gained recognition with the publication of his book series Trading Chaos, which tackles psychological aspects related to trading and what affects the market.
  • Bill Williams has created more than 6 trading indicators for MT4, including the Alligator Indicator, Gator Oscillator, Awesome Oscillator, Accelerator Oscillator, Fractals Indicator, and Market Facilitation Index. 

The Trading Chaos series of books detail the chaos theory, the first version of which aims to make unpredictable aspects more understandable and to improve one’s ability to make financial decisions. The second edition looks at the way Chaos Theory and psychology effect on the markets. Together, the books help readers to gain a better understanding of the market. Think of the books as a practical guide that explains how seemingly random market events are actually caused by certain factors and that can be used to help one make more accurate and profitable investment decisions. You can purchase the books on Amazon for around $50 and options include the hardcover book or Kindle version. Google Play Books, Barnes & Noble, and other retailers also sell the Trading Chaos books. 

In addition to publishing the Trading Chaos books, Bill Williams has also created several different trading indicators, including:

  • Alligator Indicator: This is the most popular indicator that Bill Williams has released. It consists of three balance lines which are moving averages of varying lengths. 
  • Gator Oscillator: Using the balance lines from the Alligator Indicator, the Gator Oscillator calculates two values of both positive and negative and plots them beneath the main price chart as a dual histogram. 
  • Awesome Oscillator: This indicator compares a short-term moving average with a long-term moving average to determine whether the market is bullish or bearish.
  • Accelerator Oscillator: This indicator uses values from the Awesome Oscillator minus a 5-period moving average. It is intended to give early warnings for predicted changes in market momentum. 
  • Fractals Indicator: This indicator is intended to help traders understand market behavior. 
  • Market Facilitation Index: Measures price changes per tick and plots the values on a histogram below the main price chart. 

As you can see, some of these indicators work alone while others are best used in combination with each other. While these indicators have been created by an educated man, you’ll want to make sure that they will work well with your trading strategy before deciding to use one. 

Bill Williams has contributed a great deal to the forex world as both an author and indicator creator with a strong background in psychology and trading experience. His book series is definitely worth reading if you’re interested in trading psychology or market behavior. One of the above indicators created by Bill could also help you to make more informed trading decisions if they work with your strategy. Of all the contributions to forex knowledge, Bill Williams is definitely a noteworthy contributor.