tista

Milan Oscillator

Bill Williams Breakout Setup

I have referred to the man multiple times whether tweeting about him or writing a blog post. Now I want to relearn how breakout trading works, again. A while ago, my friend invited a bunch of us into a Zoom conference sharing us how his setup works for him. He reintroduced me to Bill Williams' indicators which looked like below.


The rules are simple:

  • Prices are moving away from Alligator , open and closed above the first time.
  • AC is twice consecutively at par with the direction.
  • AO is twice consecutively at par with the direction.
  • Entry on the third candle to be sure, or the second if you're willing to risk it.

The chart above is an example from the 4 hourly time-frame. Before going into any entry, to get a macro perspective, should check on these time-frames first:

  • Weekly
  • 3 Days
  • Daily

Bonus points if monthly time-frame is also at par with the bias. Here are the charts for the larger time-frame.





It's been profitable trading with the above setup but then I have an itch to scratch. I wanted to have just a single oscillator instead of two to look at. It will enable me to make decisions faster and can use my brain juice to think about something else.

So I combined the two to create a new oscillator. I call it the `Milan Oscillator` in honor of my friend Patris who reintroduced me to Bill Williams yet again. Patris' favorite team is AC Milan, here's to you bro 🍺

Here are the same charts above with Milan Oscillator.






The rules are a bit different than the rules above:

  • No entry when the oscillator is gray, this means AC and AO are disagreeing.
  • Prices are moving away from Alligator , open and closed above the first time.
  • Oscillator is twice consecutively at par with the direction.
  • Entry on the third candle to be sure, or the second if you're willing to risk it.

On lower volume moves, prices will retest alligator , can be an entry if the retest fails.

Feedbacks are appreciated.
Release Notes: Fixed typo when presenting oscillator's color for red bars. Thank you to @nufl2 for pointing out the mistake. Cheers!
Remove from Favorite Scripts Add to Favorite Scripts

Comments

Nice!
It would be great if you can make a short video on tradingview stream about it and "Bayesian BBSMA Oscillator" , like how to read it and how to take entry.
It will really help us to understand.
Thanks in advance.
+4 Reply
bruitdefond bhavasarhemang
@bhavasarhemang, ive been using this daily for a couple weeks and think i understand the signals (although I still find the blue line mystifying).
1) use this on an hourly chart
2) the only entry points i find trustworthy are green (long entry) and red (short entry) coming down from ceiling. I use other indicators to confirm. (hourly close above/below the alligator, RSI crossing below 80 or above 20, and milan oscillator moving in same direction as price)

He says it was meant to find breakouts and if you look at the hourly chart on QQQ from june 29th/30th you can see a picture perfect set up. Green comes down off ceiling, hourly close above alligator, etc etc.

someone else said on the original thread that this is a mediocre bollinger strategy but it's clearly not. Superimpose it with a normal BB and you will see the entry points are different.
Reply
bhavasarhemang bruitdefond
@bruitdefond, Thanks, so it means I can't use it for trading like (5, 15 min TF)
Reply
bruitdefond bhavasarhemang
@bhavasarhemang, you can back test the different time periods. Problem is that since it's a new script, the sample size is very small. I'm gonna tinker with it for a couple months and ill let you know if I see any success on the shorter time frames. Good luck my man!
Reply
bhavasarhemang bruitdefond
@bruitdefond, Thanks for the wonderful help. Sure, please share your result.
Again thanks in advance. :)
Reply
How to set the timer in tradingview to notify Bull, Bear, Hbull, Hbear as the chart, I have installed but the notification parameters are incorrect. Only install "in A0 floud"?
Reply
@tista Error in Line 49? AC and Ao is red, right?
Reply
tista nufl2
@nufl2 thank you for pointing out the mistake. I have fixed it, your contribution credited in the release notes. I hope Milan Oscillator helps you. Cheers!
Reply
nufl2 tista
@tista, thanks for all the work. In your BBSMA, which I still try to understand 😉, is the same typo.
Reply
what do you use for stop loss? when do you take profits?
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out