“Penyu

Bertelur”
Code
The Forex Trading System
Soros1
“Penyu Bertelur” is the Code name for the Special Forex Trading System
which is base on lliott !a"e#
Strongly $ecommended% Time Frames for &sing this Code are 1 'our and ( 'ours#
The Blue Trend )ine*or +ellow )ine ,i"en by Soros1- is the ./!#
The ./! is the 0eterminant )ine For 1nitiating )ong and Short Trade#
2a3or Contents for the Code#
• Chaos Theory 4"er"iew
• /lligator
• 2ar5et 0imensions%
1# Fractals
6# /wesome 4scillator */4-
• xit the 2ar5et
The /lligator
Bill Williams describes the /lligator as being like a compass which keeps your trading in the
right direction. The Alligator helps you spot a real trend and stay out of range-bound trading,
which always result in losses. The Alligator is the combination of three balance lines:
• Alligator's aw !the blue line" # !$ellow line pro%ide by &oros'"-'(-period mo%ing
a%erage at the mid price !)igh*+ow",-, which is offset . bars into the future/
• Alligator's Teeth !the red line" - .-period mo%ing a%erage at the mid price
!)igh*+ow",-, which is offset 0 bars into the future/
• Alligator's +ips !the green line" - 0-period mo%ing a%erage at the mid price
!)igh*+ow",-, which is offset - bars into the future.
1n order to build the Alligator in 2etaTrader 3 use the “1nsert 78 1ndicators 78 Bill !illiams
9 /lligator” menu se4uence.
1f all three lines are intertwined, the Alligator is asleep and the market is range-bound. The
longer it sleeps, the hungrier it gets. When it wakes up from a long sleep it chases the price
much farther, therefore price mo%ements are much stronger. When the Alligator is asleep, stay
s4uare. 5nce the Alligator wakes up, it opens its mouth !Balance lines di%erge" and starts
hunting. )a%ing eaten enough, it goes to sleep again !Balance +ines con%erge", so it's time to
fi6 profits.
1f the Alligator is not asleep, the market is either uptrending or downtrending:
• if the price is abo%e the Alligator's mouth then it's an uptrend/
• if the price is below the Alligator's mouth then it's a downtrend.
The Alligator also helps to determine the character of the 7lliot wa%es:
• 1f the price is outside the Alligator's mouth the wa%e is impulsi%e.
• 1f the price is inside the Alligator's mouth the wa%e is correcti%e.
The formula for the /lligator%
MIDPOINT PRICE = ( HIGH + LOW ) / 2
ALLIGATOR'S JAW = SMMA ( MIDPOINT PRICE, 13, 8 )
ALLIGATOR'S TEETH = SMMA ( MIDPOINT PRICE, 8, 5 )
ALLIGATOR'S LIPS = SMMA ( MIDPOINT PRICE, 5, 3 )
Where:
)18) - the highest bar price/
+5W - the lowest bar price/
&22A !A, B, 9" - smoothed mo%ing a%erage !A - smoothed data, B - smoothing period, 9 -
mo%e into the future",
A++18AT5:'& AW - blue line/!$ellow line gi%en by &oros'"
A++18AT5:'& T77T) - red line/
A++18AT5:'& +1;& - green line.
F$/CT/)S
Bill Williams says that it is better not to take trades before the first fractal is triggered.
A buy fractal is a series of fi%e consecuti%e bars where the highest high is preceded by two
lower highs and is followed by two lower highs. The opposite configuration would be a sell
fractal. Both fractals !Buy and &ell" may share bars.
1n order to add fractals in 2etaTrader 3 use the “1nsert 78 1ndicators 78 Bill !illiams 9
Fractals” menu se4uence:
Fractals generate the following signals%
• if a buy fractal is abo%e the Alligator's teeth !the red line" we would place a Buy &top
one tick abo%e the high of the up fractal/
• if a sell fractal is below the Alligator's teeth we would place a &ell &top one tick below
the low of the fractal sell signal.
1mportant%
• We would not take a buy if a fractal is formed below the Alligator's teeth.
• We would not take a sell if a fractal is formed abo%e the Alligator's teeth.
<ractals are %alid until they are either triggered or a new fractal in the same direction appears
!in this case the pre%ious signal has to be ignored and the pending order has to be deleted".
<ractals are ob=ects of the first dimension. 5nly after the breakout of the first fractal can the
following signals be accepted to open positions in the direction of the first signal. &ignals from
the consecuti%e fractals in the direction of the first deal can be used for adding on to the
position.
/wesome 4scillator */4- 4"er"iew
Awesome 5scillator !A5" determines market momentum !the second of fi%e market
dimensions" at a gi%en time on the last 0 bars,comparing them to the momentum on the last (3
bars.
/wesome 4scillator */4- is simply the difference between the (3-period and 0-period simple
mo%ing a%erages of the bar's midpoints !)*+",-. Awesome 5scillator !A5" is displayed on the
chart as a histogram:
1n order to add Awesome 5scillator in 2etaTrader 3 use the “1nsert 78 1ndicators 78 Bill
!illiams 9 /wesome 4scillator” menu se4uence.
1n 2etaTrader 3 each histogram bar which is higher than the preceding one is green, each
histogram bar which is lower than the preceding one is red.
Awesome 5scillator generates three buy signals and three sell signals, but we do not use them
until the first fractal buy or sell signal is triggered outside the Alligator's mouth.
The /wesome 4scillator Saucer buy signal
/wesome 4scillator Saucer buy signal is generated when the histogram which is abo%e the
>ero line changes its direction from falling to rising:
)istogram ?A@ bar, of any color, should be higher than histogram ?B@ bar. )istogram ?B@ bar
must be red. )istogram ?9@ bar !signal" must be green.
5nce the signal has been generated, place a Buy &top one tick abo%e the high of the price bar
that corresponds to the histogram ?9@ bar.
The most recent saucer signal cancels all pre%ious ones !do not forget to delete pending orders
after the signal is cancelled". Bear in mind that we buy only if the current histogram bar is
green and we sell only if the current histogram bar is red.
/wesome 4scillator Saucer sell signal
/wesome 4scillator Saucer sell signal is the opposite of the Awesome 5scillator &aucer buy
signal !see abo%e". This signal is generated when the histogram that is below the >ero line
changes its direction from rising to falling:
)istogram ?A@ bar, of any colour, should be lower than histogram ?B@ bar. )istorgam ?B@ bar
must be green. )istogram ?9@ bar !signal" must be red.
5nce the signal has been generated, place a &ell &top one tick lower than the low of the price
bar that corresponds to the histogram ?9@ bar. The most recent Awesome 5scillator saucer sell
signal cancels all pre%ious signals.
/wesome 4scillator cross buy *sell-
A buy !sell" signal is generated when the histogram crosses the >ero line from below !abo%e":
;lace a Buy &top !&ell &top" one tick abo%e the high of the price bar !below the low of the
price bar" that corresponds to the first bar that crosses the >ero line.
1f there is a buy signal, histogram ?B@ bar !a signal one" is green, if there is a sell signal it is
red.
Twin pea5s signals
A buy !sell" signal called the Twin Pea5s buy *sell- signal is generated when the histogram is
lower !higher" than the >ero line, and the last indicator's bottom is higher !last indicator's top is
lower" than the preceding one. Between these two bottoms !tops" the histogram can ne%er be
higher !lower" than >ero:
The Twin ;eaks buy signal is the only buy signal that is created below the >ero line. &imilarly,
the Twin ;eaks sell signal is the only sell signal that is created abo%e the >ero line.
;lace a Buy &top !&ell &top" one tick higher than the top !lower than the bottom" of the signal
bar. 1n the case of a buy signal, histogram ?9@ bar !a signal one" is always green, otherwise it
is red.
Ae%er buy on a red histogram bar and ne%er sell on a green one. 1f an ?unfriendly@ histogram
bar occurs before the e6ecution of a pending order, which was placed in the direction of the
Awesome 5scillator signal, the signal has to be ignored and the order has to be deleted.
Exit the Market
'ow to place Stop )oss orders
Bill Williams gi%es his recommendations in relation to &top +oss orders:
'. 1f on the opening the market is trending, then it is better to close positions if the bar's
closing price crosses the Alligator's teeth !the red line".
-. 1f the market is %olatile, use the Alligator's +ips !the green line" as the le%el to place a
&top +oss order. The market is characterised as %olatile when the prices angle of
inclination is more than that of the green line. 1n both the abo%e cases, at the end of the
current bar the &top +oss is shifted to the le%el of the red or green line of the ne6t bar.
(. 5nce the fifth histogram bar occurs in the ,reen :one !$ed :one" place the &top +oss
3. 9lose all open positions if a signal in the opposite direction appears. Bullish
di%ergence , bearish con%ergence between the Awesome 5scillator and the price signals
that the trend is about to end: