Indicator for Stop Loss levels calculation using Bill Williams technique [ ru ]

Author

Vladmir Hlystov

Description:

An indicator for Stop Loss levels calculation using Bill Willams technique

Bill Williams in his book "Trading Chaos: Applying Expert Techniques to Maximize Your Profits" (Chapter 7, Level One: Novice Trader, p.95) has described SL as follows:

"...We place the air bag one tick above/below the high/low of the second bar back on one significantly higher time frame (or the next bar further back that has both a higher high and a higher low or a lower high and lower low).

This is our air bag protection. Its purpose is to protect us against a drunken market that is moving against us. Remember, it is not necessiarly an entry signal; it is protection against major losses..."

The indicator calculates and shows Stop Loss levels (for Buy and Sell positions without installed SL) using this method.

Indicator variables:

Image:

Fig 1. Bar was found

Fig 2. The upper bar was not found (SL for Sell position has determined using the greater timeframe):

Recommendations:

• SL Level is drawing on the right side of the current bar, set chart shift on:

• To make it clear, use show_bar=true

• Good Luck!

17.10.2009:

A new feature has added:

It is possible to show Stop Loss Levels in the history (SL_BW.mq4):