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Larry Williams Trading Strategies

In this article, we present some Larry Williams trading strategies. Larry Williams has marked his name in the register of successful traders. He has authored several books and is very popular in the trading industry.

Born on 6th October 1942, Larry Williams is a stock and commodity futures trader, and a political candidate in the state of Montana in the 70s and 80s. He is the author of more than 10 books on commodity futures and stock trading.

Want to know more about Larry Williams? Keep reading!

Who is Larry Williams?

Larry Williams is a renowned stock and commodity futures trader who authored many books on commodity futures and stock trading. During the 1970s and 80s, he tried his luck in politics and was twice a senate candidate of the Republican party in the state of Montana.

Born on 6th October 1942, Larry graduated from Billings High School, in Billings, Montana in 1960 and proceeded to study Journalism (class of 1964) at the University of Oregon in Eugene.

Williams developed many trading indicators including the Ultimate Oscillator, Williams %R, COT indices, Cycle Forecasts, Market sentiment, Accumulation/Distribution, etc.

What is Larry Williams Famous for?

Williams is known for his trading prowess and the indicators he created. In one of his early books in 1979, he documented how he made one million dollars. Williams’ trading prowess was tested at the 1987 World Cup Championship of Futures Trading hosted by the Robbins Trading Company, and he won the championship with a ground-breaking 11,300%, turning his initial trading capital of $10,000 to $1,100,000 during the 12-month competition. The interesting fact about this tournament is that it was done using real capital.

At the Traders Expo in Las Vegas in November 2014, Williams documented a series of four videos highlighting his trading experience over the past five decades.

Larry Williams trading strategies (Larry Williams Indicators)

Some of the trading indicators developed by Williams are below. If you press on the links you’ll arrive at posts having backtests and trading strategies.

  • Williams %R. This is a momentum-based indicator that fluctuates between a 0 and -100 line. It helps traders to identify overbought/oversold conditions in the market. It can be used as an entry and exit tool in the market. A reading between -20 and 0 is considered overbought and a reading of -80 and -100 is considered oversold.

  • Williams Sentiment Index. This indicator is used to measure the level of market sentiment in the market. It is an oscillator with two levels, 75 and 25. When the indicator reading is above 75, it is considered bearish and when it drops below 25, it is seen as bullish.

  • Williams Money Flow Index. The Williams MFI shows when institutional investors are buying or selling a given stock or commodity and can be helpful as a timing tool for entry and exits. A high index reading indicates an accumulation phase and that a rally is imminent. While a low index reading signifies a distribution phase in the market.

  • Williams Insider Accumulation Index. This indicator works similarly to the Williams MFI. It helps remove volume which can be a misleading data in stocks and commodities. It measures the buying and selling of large institutions. Similar signals are generated as the Williams MFI.

  • WilliamsVixFix. This indicator is a synthetic VIX indicator for those securities that have no options market.
  • Williams Volatility Channel: The indicator is a channel with upper and lower bands, with the gap between the bands indicating the level of volatility in the market. When there is high volatility, the gap widens and when volatility is low, the gap diminishes.
  • The ultimate oscillator: The oscillator is a momentum indicator designed to measure the price momentum of an asset across multiple timeframes.