Larry Williams is the symbol of short-term trading. This is the man who proves each year that hundreds and thousands of percent per annum can be earned trading on forex. In a single year, he increased his capital from 10,000 US dollars to one million one hundred and seventy thousand dollars. Let's impose two moving averages on the chart. The first moving average will be calculated on the basis of the bar's minimums. The second moving average will be calculated on the basis of the bar's maximums. As you can see, the periods of both moving averages are equal to 3.
Larry William's strategy is to buy at the price of a 3-bar moving average calculated on the basis of the bar's lows and to close the position at the price of a 3 bar moving average calculated on the basis of the bar's highs. The signals for sell deals are opposite to the signals for buy deals. Please note that we open positions only in the direction of the trend. We tick the points of the chart where the trend changes its direction. These are the moments when we switch from sell deals to buy deals and vice versa.
If the trend turns upwards, we buy on the line of 3 bar minimum. Fix profit on the 3 bar maximum and wait for a rebound to the 3 bar minimum. Short-term sell deals are made in the opposite way. When the trend turns downwards, we sell on the 3 bar maximum, and fix profit on the 3 bar minimum. The method is quite easy, but it requires self-control, and strict adherence to your strategy.