Bill Williams Indicators | Bill Williams Chaos Theory | IFCM India
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Bill Williams Indicators | Chaos Theory


To understand the overall structure of the market B. Williams advised to analyze the market through the following five dimensions:

  • Fractal (phase space)
  • The driving force (energy phase)
  • Acceleration / deceleration (power phase)
  • Zone ( combination of strength / power phase)
  • Balance Line

For understanding and analyzing these dimensions there have been established a number of indicators.

AC Indicator - Accelerator Oscillator

The Accelerator Oscillator is an indicator which fluctuates around a median 0.00 (zero) level which corresponds to a relative balance of the market driving force with the acceleration. Positive values signal a growing bullish trend, while negative values may be qualified as a bearish trend development. The AC indicator changes its direction before any actual trend reversals take place in the market therefore it serves as an early warning sign of probable trend direction changes.

Williams Alligator Indicator

Bill Williams introduced the Alligator indicator almost three decades ago in 1995. But it is still a very popular indicator in trading circles.

Awesome Oscillator - AO Indicator

The creator of the Awesome Oscillator, as well as several other indicators and oscillators, is the famous trader Bill Williams. In fact, the AO was a kind of addition to the Williams Alligator - another “invention” of Bill Williams, and the MACD mechanism was adopted as the basis for its creation, albeit with significant changes.

Fractals Indicator - Williams Fractals

Bill Williams' Fractals are formed around a group of five consecutive bars the first two of which are successively reaching higher (or diving deeper) and the last two descending lower (or growing higher) with the middle one being the highest (or the lowest) result in the group accordingly.

Gator Oscillator Explained

Being an oscillator in the form of two histograms built on either side of the naught line, the Gator Oscillator plots the absolute difference between the Alligator’s Jaw and Teeth (blue and red lines) in the positive area and the absolute difference between the Alligator’s Teeth and Lips (red and green lines) in the negative area. The histogram’s bars are colored green if exceeding the previous bar’s volume or red if falling short.

Market Facilitation Index Indicator - Bill Williams MFI

The absolute values of the Market Facilitation index are represented by the histogram's bars while the comparison of the index and volume dynamics are given in colors which are vital in terms of reading the indicator signs.

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