Trading Bill Williams Profitunity D1 Strategy - Part 1 | Trading Highlights

Hello everybody and welcome to Project Trader. This is the trading highlight show, all of the best bits from our testing of trading strategies. And here we go, folks. Better gear up. The time is now for Profit Unity.

This strategy is coming from the well-known trader named and called Bill Williams. For Opportunity is not just a trading strategy; it is a state of mind, a spiritual bond of unity enjoyed between you and the markets. A perfect symphony that couldn't be described by 1,000 poets writing for 1,000 millennia. You've got to experience Profit Unity, and so that is exactly what we are going to do now.

Profit Unity has been developed through the years, so there are a few different versions which you may have heard of or read about. Do not be surprised if something we say or do in this strategy differs slightly to other Profit Unity strategies that you've experienced. In fact, there are elements of Profit Unity which Bill Williams himself states cannot be pinned down to a perfect set of rules. A touch of subjective judgment is going to be required here or there with Profit Unity.

But I do want to be clear from the outset on which version of Profit Unity we are going to be trading. It is from the book "Trading Chaos: Maximize Profits with Proven Technical Techniques," the second edition, which was released in 2004. And it's not just written by Bill Williams, but also by his daughter, Justine Gregory Williams, also a trader. In the video description, I'll link to a PDF of the book, and as well, I'll link to a summary of the book. So there is a couple of options for anyone who does want to follow the video with the relevant literature. There's plenty of good stuff in the book as regards coastlines, forests, and music, but we'll be focused purely on the trading strategy, which begins at chapter eight. Good stuff.

Now, we should all be on the same page. Let's first discuss the parts of Profit Unity that we need to understand, of which there are four. Three of them are packaged as technical indicators, and the fourth one will be checking the price structure. For we will give an overview for each of these parts here, but if you do want more details, there are individual videos on them linked in the description.

Part one is the Alligator indicator. Easy to understand if you don't already know it. It is just three smooth moving averages which are going to sit on your price chart as moving averages do. That's about what it looks like. The three averages, they are nicknamed the jaws, the teeth, and the lips. And they have look-backs of 13, 8, and 5 periods respectively. They're also all shifted forward on the chart. The slowest moving jawline in dark blue is shifted forward eight periods. The middle teeth line in aqua is shifted forward at five periods. And the fast moving lips in white, that is shifted forward three periods. All of the averages are calculated using the median price, which is simply the high and low of price divided by two.

The basic idea with the Alligator is that when those three moving averages are entwined, crossing over one another, as you can see they are in this region, that means the Alligator is asleep. And the indicator therefore believes that there is price uncertainty and inaction in the market. The interpretation of that uncertainty is that you shouldn't be entering trades because there isn't a clear move on price. Contrast that when the Alligator lines are all separated, as they are in this region, they are parallel with one another, and that means the Alligator is awake and he is feasting. Classically speaking, this suggests the price must be trending, and it is therefore a better time to be getting into some trades.

Next up, part two. We've got the Awesome Oscillator. This is a momentum-based oscillator, which is calculated by taking a five-period simple moving average of the median price and subtracting from it a 34-period simple moving average of the median price. The result is then followed on a histogram with a zero line as its center point. If the histogram is above zero, that means the five-period average is above the 34-period average. That can be considered as bullish for price, and vice versa. It can be seen as bearish momentum when the histogram is below zero, as the faster five-period average will be underneath the slower 34-period average. That zero level is simply nothing more than the crossover of the two averages. The green bars of the histogram indicate upward momentum in price, and the red bars indicate downward momentum. That's all there is to it.

The third part of the strategy are fractals. These are often packaged as a technical indicator, but if they're not, then it is no worries, as fractals are just a basic candlestick pattern that we can look for in the market with our eyes. Fractals are technically split into two subsets of fractal: the bearish fractal and the bullish fractal. Both of those subsets are candlestick patterns made up of five consecutive candles where the price of the middle candle is either the highest high or lowest low of those five candles. So on the left, a bearish fractal has the center candle at the high of price, indicating a bearish signal for the move. Then flip that for our bullish fractal on the right, where the middle candle of the five is at the lowest low in price. It doesn't have to be a perfect ascension and decentraly; they can look something like this as well. Not as obvious to spot on first sight if you haven't got the indicator pointing them out to you, but they are absolutely valid fractals. Here's what a whole bunch of them look like on a price chart, and as you can see, they do appear quite regularly. If all you need for an entry signal is a fractal, then you likely shall not be waiting very long. Just remember that the fractal symbol appears outside the third candle, so it does have to wait until the close of the fifth candle, two periods later, for a completed confirmation of the fractal. Do not be fooled into thinking that they are performing better than they really are.

Our fourth and final part is the divergent bar. This is the one that, for us at least, won't be packaged as a technical indicator, but you might be able to find an indicator out there for it or learn to code and get one going yourself. Your pro divergent bar, or divergent candle depending on your persuasion, is a candle which gets to a new extreme in the price move, but then recedes from that move with the close of price occurring in the other half of the candle to the extreme. Divergent bars can come as either bullish or bearish. So here's a couple of bullish divergent bar examples. You can see for each of these, prices found a new low as compared to the previous candles, but then it's reversed its direction and closed in the top half of the candle, thus indicating a turn towards bullish momentum. Take a look at a bearish divergent bar over on the right as well. Price found a new high compared to the previous candles, but then closed in the bottom half, therefore typically suggesting a turn towards a bearish price move.

Those are our four parts of Profit Unity. And now that we understand how each of those parts fundamentally operates, we are ready to move on to the actual entry signals that they give us. And if you are someone who enjoys Bill Williams' linguistic trickery, then you are in for an absolute treat. From the fact that he calls the three entry signals of Profit Unity, the "Three Wise Men." Oh yeah, just like in that uh best-selling book there. I get it. It's a biblical strategy. Wise men.

The first is the bullish or bearish divergent bar. Something like that, right? That's a bearish divergent bar. Nope. No, actually, we couldn't get into a trademark signal like that because the rule that we have is that we need the divergent bar to be away from the Alligator indicator, not on top of it. Bill Williams doesn't specify a consistent distance away from the Alligator that the divergent bar should be, but simply says that the further away it is, the better. We're going to use the Average True Range indicator to help us out with that consistency, or use its default 14-period input. And what the ATR is trying to do is to measure out the average high to low price range of those 14 periods. Our rules will then be that the divergent bar must not be touching any of the three Alligator averages, and that the close of the divergent bar must be at least one times the ATR value away from the slowest of our Alligator averages, the jawline.

So on this example chart, we're looking for our divergent bar, which is down here with a lower low in price and a close in the top half of the candle, making it a bullish divergent bar. We can see that no part of the candle is touching any of the moving averages, so we just measure the distance from the closing price of the divergent bar to the jawline, and we make sure that they're further than one times ATR distance apart. Price is nicely away from the Alligator, as it is in this example.

That's not all we require to get us into the trade, though. We also need what Bill Williams calls angulation. Angulation means that price has consistently been moving further away from the Alligator, particularly from the slower teeth and your averages. Case in point on our chart from before, let's just remember that our bullish divergent bar is at the bottom there. So we draw onto the chart two straight lines. Both from where price breaks through the Alligator head, which we can see where that happens on our chart, the big red bar, that's the candle where it's breaking through the head. One line is measured from price at that point through to the close of the divergent bar. For this downward move, we can see where the line is getting pretty close to the inner edges for some of those periods, but some of those other periods, they do push pretty far away from the line. It's going to be difficult to get a straight line perfect over all those different closes. Then the second line we plot runs an average of the teeth or the jawline, either one is acceptable. So for our angulation, we'll be splitting the difference between the two. Now that we've got our two lines on the chart, all we need to see is that they are moving away from one another. They're not getting closer or running parallel to one another. You need to see the wedge shape from them, as we do here. That is angulation.

Another angulation example, just so we're sure. This time going the other way. We've got our bearish divergent bar up top with a higher high in price, followed by a closing of price in the bottom half of the candle. It measures at a good distance away from the jawline, so we can take it to angulation, which is off a much longer price run this time than it was for the last example. But again, it's from where price breaks through the head of the Alligator. Our top yellow line runs all the way across the close of our divergent bar, and our second yellow line we've done is a makeshift average of the teeth and jawlines. Again, it's difficult to get it set out perfectly, but measuring against either or both those lines will give us angulation.

And so now we are good to go, except we're still not actually going to enter into the trade just yet. We are instead going to set a stop order. So the price continues a small amount as we expect it to from the divergent signal, and that will be the final confirmation that we need to get onto the trade. So for a bullish divergent bar, the stop order will be placed one pip above the higher price for that candle. Then for a bearish divergent bar, that stop order will be placed one pip below the lower price for that candle.

Let's take a look at a full example here. On this occasion, it is going to be entering from a bullish divergent bar. And so we see that bar down the bottom here, a new low in price, but where the close is, of course, in the top half of the candle. Then we make sure it's at least one times ATR distance from the jaw moving average, which in this instance, you can trust me, we are all good for that. The divergent bar is away from the Alligator, which means we can slap on our two angulation lines. They are clearly moving apart from one another in wedge formation, so we are all good for the angulation, which means we are going to place a stop order for a buy trade ever so slightly above that bullish divergent bar. The order is then going to get filled on that next candle where our yellow arrow points to. Price has moved into our direction, and so we're in the trade, just like that. ABC, one, two, three.

Likewise for a bearish divergent bar, we can show a full example here. We have our bearish divergent bar at the top with its new high in price, followed by the close of price in the bottom half of the candle. We measure out the distance from the close of that candle to the jawline to be more than one times ATR. So our divergent bar is away from the Alligator. Then we mark out our two lines of angulation. The lines are clearly moving further apart from one another, so we do have angulation. And all of our criteria for a valid bearish divergent bar, they have been met, meaning that we can pop our stop order for a sell trade just beneath the low of our divergent bar. Without white dotted liners, which again, in this example, it is going to trigger on the very next candle, suggesting that bearish downward momentum is going to continue. And most importantly, it gets us into a sell trade.

Once we're in the trade, that's not everything, though. We are then going to need to set a stop loss, so that our account doesn't collapse from an over-risk of capital due to an overbearing ego. For a buy trade, the stop loss will be placed one pip below the low in price of the divergent bar. That's highlighted here on our bullish example, where the white dotted line was our entry price. The red dotted line just beneath that low, and that is our stop loss. Then, no surprise for a bearish entry, a sell trade, the stop loss for that one will go one pip above the high of price from the divergent bar. Again, we enter in at the white dotted line and we set what turns out to be a pretty healthy stop loss at a pip or so above the high of the divergent bar.

Interestingly, with the first wise man, you really are shooting for those reversals. We are entering against the direction that the Alligator is feasting, but we're hoping that the momentum has been exhausted and that the Alligator is all done eating in that direction. Starting with a reversal signal didn't always used to be the way with Profit Unity. They had to adapt to changing markets. They wanted to try to be able to make sure they get onto a trade at the first signs of a potential change in the trend. That means if we are in an active trade and we get a valid divergent bar signal which is going the opposite direction to our trade, we would set a stop loss just outside of the candle where that potential reversal is headed. Picture in a buy trade and we get a valid bearish divergent bar, we set a stop loss just beneath the low of that divergent bar. If we're in a sell trade and see a bullish divergent bar, our stop loss goes just above the high of that candle. Also, at the same value that the stop loss is set, we would still set our stop order too, so that we can be ready to get into the new move. Now, going the other way, it's a switch for our entire position to try and catch a fresh trend right at its beginnings. A very true stop and reverse maneuver, absolutely.

Finally, for the first wise man, we will manually trail the initial stop loss we set, so that it is one pip outside the extreme of price for the last four candles. For a buy trade, it will be at the low in price of the last four. And for a sell trade, it will be at the highest price for the last four. Naturally, we will only trail the stop loss in our trade direction, never against us. But that is it for the first wise man, and it does get simpler from here for our other wise men.

Wise man the second is based around that momentum histogram, you know the one. It's the Awesome Oscillator. Now, if you are already in a trade from the divergent bar, this signal is seen as a topping up of the first wise man, because the wise divergent bar aims at reversal entries. It is safe to presume that when you get into a trade that way, the Awesome Oscillator would have previously been moving against the direction of your trade entry. So entering a buy trade, for example, you'd expect the Awesome Oscillator to have been moving downward in red at the point of entry. For us to take action on the Awesome Oscillator, we'll need to see the close of three consecutive bars in our trade's favor. A buy trade will need to see three upward green bars in a row, and for a sell trade, that'll be three downward red bars in a row. At the close of the third bar, we then set a stop order just outside the extreme point of price for that candle. As it is with the first wise man, it's a stop order instead of entering straight into the trade, just gives you that one extra layer of confirmation for it, the icing on the bun.

Let's example it out here with a buy trade. We've got a bullish divergent bar down there in the yellow ring where we enter our divergent bar buy trade. Then a few periods later, momentum does turn enough that we get three consecutive Awesome Oscillator bars which are moving to our favor in the green. We've also pointed out the corresponding candle on the chart, that third Awesome bar. So we set a stop order for a buy trade, a pip or so above the high of that candle, which does get triggered nicely there on the very next candle, as price does move the direction we want it to. Up, up, and away.

Let's do a sell trade example, just so we know we know it. Starting out with our bearish divergent bar at the top as our first entry. As price comes down off the highs, momentum shifts, and we do get three consecutive downward red bars from the Awesome Oscillator. That's this candle in price, as it's a little hard to tell with the eye. Again, it's a stop order at the extreme point, which is therefore going to be a sell stop order about a pip or so beneath the lower price for that candle. And because of a couple of the lows in those candles, it seems that the order would trigger within that price range, around about there. Even though it still looks a bit indecisive between the Alligator lines, when it would get us in, at least with our magic ball, we can see that price does continue to come down after that indecision, meaning yes, a winning trade for us.

As with our stop loss for the first wise man, with the second wise man, we are also going to set the stop loss just outside the extreme point of price. Remember, that's one pip below the low for a bullish buy trade, and one pip above the high for a bearish sell trade. Also, if we get three consecutive Awesome Oscillator bars close against that trade's direction, we will set a stop loss at the edge of the third candle, which would knock out our trade. We do the stop loss instead of immediately jumping out the trade, just for that little bit extra confirmation again, to see if that final push is gonna come through and reverse the price.

Finally, for the second wise man, we are gonna manually trail our initial stop-loss slightly above that extreme point of price for the previous four periods. For a buy trade, it would be beneath the low in price of the last four. And for a sell trade, above the higher of the last four. Phil talks about that trading stop-loss going at the extreme point of three to five candles, so we've just split the difference, plonking ourselves in the middle on four.

Now we can move on to our third wise man, the last of the three wise men. This is based around the only one of our four Profit Unity parts that we are yet to use, and that is the fractal candlestick pattern. We all want a bit of assistance from the Alligator indicator as well here, though. Much as the second wise man can be seen as a top-up of the first wise man, likewise, in a perfect trade, the third wise man can be seen as a top-up for both the first wise man and the second wise man. Even though we do have bullish and bearish fractals, that doesn't mean that we're going to be entering into a buy trade when we see a bullish fractal. We're not going to be entering into a sell trade from a bearish fractal. Well, they can be used like that if you're a little bit crazy, but not in Profit Unity. That is not how Bill Williams envisioned them being used as part of his strategy. We are actually looking for a breakout past the fractal. So price breaking through the low on a bullish fractal candle, that would be a sell trade entry, and breaking through the high on a bearish fractal candle, that would be a buy entry.

Let us take a look at a bullish fractal breakout, which is pretty near perfect. We're looking for a bearish fractal for a bullish breakout. We see one here, which looks like a pretty good signal. The main thing that we're making sure of with the fractal is that the candle is not touching the teeth of the Alligator. It is above the Alligator for our buy signal. So that's because this signal is more trend-based. It's not going to come as a reversal on the opposite side of the Alligator like the divergent bar does. If we do get the trade entry with this one, it's gonna be in the direction that the Alligator is feasting. So what we do is we set a stop order just above the high of that candle with the fractal symbol above it. That is going to be here along our white dotted line. Then that stop order gets triggered here, about entering us into a buy trade. Another bearish fractal appears up here, and it's still clearly above the teeth of the Alligator, so we set our stop order at this point, just above the high of that fractal candle, and over here is about where that would get us into another buy trade. Before finally, a third bearish fractal forms. One more time, we set ourselves up with a stop order for a buy trade, and one more time, we do get into a trade at this time, over on that candle in the top right-hand corner. That is three consecutive fractal entries in the same direction, and that will be our limit for fractal entries. We don't expect a trending move to keep going forever, so we do need to limit our trade entries regardless of circumstances. But it does mean that you can tell this example before us, that is a pretty prime example. Can't get many more consistent breakouts than that.

Let's take a look at a bearish breakout, though. This time around, we're trying to spot bullish fractals which are appearing underneath price. Firstly, for this one, we can see a bearish divergent bar at the top there. We'd be getting in on that one from our first wise man entry signal. Then as price comes down, we get a bullish fractal here, except that the candle is all over the mid-length average of the teeth. We need it to be below the teeth for the entry. So there, sadly, is not a move for us there. A few candles later, though, we do get another bullish fractal, which this time isn't being interfered with by the teeth line. It overlaps with the jaw, but that is not a problem. It's only the teeth that we're looking at. So we can set our stop order beneath the low of that candle, and we watch it trigger probably around about there. It looks like a low of that candle would tag it in price. Then retraces for a moment, but it does take a run down that leads us into another bullish fractal down here, and so we set another stop order beneath the low once again. That one would get us in at this point, just a couple candles over. Nice little move, in fact, it's the first candle after the fractal fully forms, as remember, we must wait for those two candles following the symbol to even have the complete confirmation. Then just before price goes off screen, we get another bullish fractal. Again, this one away from the teeth. It is going to get us in over here on our stop order. So that means we will get our maximum three consecutive fractal entries. Plenty of nice profits to be had there.

For the stop loss on our third wise man, it will initially be placed just outside of the extreme price for the fractal candle. So if we get into a buy trade from the fractal breakout, the stop loss will go a touch beneath the low of the fractal bar, and vice versa for a sell trade. And the stop loss goes just above the high in price of the fractal candle. From that point, just as with the first two wise men, we will manually trail the stop loss to be just outside the edge of the outer price value from the last four candles. Hopefully, that way, we are able to squeeze some profits from a truly trending move. That's the third wise man.

So give it up one final time for our Three Wise Men. Wise Guy One: the divergent bar. Wise Guy Two: the Awesome Oscillator. And Wise Guy Three: the fractal breakout. Even though we have described the Three Wise Men in the order that they are presented as per the Trading Chaos book, you don't have to enter off of Wise Man One first. You can take any of the signals first so long as the entry criteria are met. I will say that for us in this strategy, we are going to keep it simpler, and we are going to enter the trades closer to their natural order. Certainly, we will start by always taking a divergent bar signal first, but after that, either of the Awesome Oscillator or fractal wise men may come into play for us as valid entry signals. Essentially, the wise men will always start us off, but we're happy to follow either the second or third after that. If we do find that we are really struggling for divergent bar signals to get us kick-started, then we'll take a look at going in off the other entry signals from the second or third wise men, but let's at least try and get some of those divergent bars to begin with.

That's it for the Three Wise Men, but we've still got a couple of considerations to make as regards risk and money management for the strategy. When it comes to the risk volume, we are going to use a method detailed in the book, which is called reverse pyramiding. It does start you off with a low risk on the divergent bar, as that trade is generically seen to be the riskiest. That's when you're shooting for the initial reversal candle, can be pretty shaky stuff. So if we did have a perfect trade entry signal starting with the divergent bar, we can call the risk value we set for that trade to be a 1x risk. Then would come the Awesome Oscillator signal, the second wise man, and we would be feeling much more confident with the move at this point, so we ramp up our risk by quite a lot for this trade. We go for a 5x risk. Big jump there. Then the first of our three possible fractal signals from the third wise man, we would put 4x risk on that one. The second fractal would be at 3x risk, and finally, if we did get all the way there, trade number five, the third fractal, that would be placed with 2x risk. Knowing now the risk amounts for each of the trades, hopefully that makes the reverse pyramid name as clear as ever. With that 1x risk at the top, though, before we go into the reverse pyramid, I do see it as a bit more of a reverse Christmas tree, or an inverted Christmas tree, an upside-down Christmas tree. There's a few different names we're working on for it. If by the end of the move, we did get into all five trades, and that would be a 15x risk. Of course, we're not always going to end up in five trades for every move, but we still don't want to go crazy on the risk. So to make sure we're not risking too much, and also to make sure that we've got enough margin along the way for our trades, we are going to call that 1x risk a 0.2 risk of our capital. That will be calculated by measuring to where the initial stop-loss position will be for each trade. We're aiming to have a risk amount low enough so that we don't get crushed out of the strategy, but obviously, we also want a decent reward back when it works out well for us and we've put in a hard day's trade.

All right, we are almost there. We have just got a final couple bits of information for how we'll be trading. These bits aren't particular to the strategy; you can change them at will. It's just how we want to trade it. So we'll be on the daily time frame. That's one day's worth of price action within each candle. This is Bill Williams' preferred time frame, hence why we're going with it, but he does state that Profit Unity can work on any of the time frames. If you didn't want to trade on the daily, give those one-second time frame charts a whirl, why not? In terms of the market that we're trading, we are going with stocks, the equity markets, shares. We don't want to check a million companies every day, though. So instead, we are going to trade on the 30 companies that make up the Dow Jones Industrial Average. That will be 30 stock charts that we're checking each and every day at the end of the candle to see if we've got any reversal bars. Ah, we better journal those trades too, I suppose. We can't just take Bill Williams' word for it and assume that we're making money in the background. Let's make sure we are doing the absolute bare minimum when it comes to quantitative and qualitative analysis over our trades. We'll try to learn something. We'll try to learn something.

Well, that is it, at long last. If anything, it does still sound unsure to you, then do not worry. Don't start panicking, because now we are going to get onto the charts. We are going to start trading. Let's find out how good or bad of a strategy a Profit Unity it really is.

Here we are in the charts then for our first day of trading Profit Unity, 4th the 4th 2022. And we've just got Apple Incorporated pulled up as our example. So remember, the first thing that we're looking for is the divergent bar away from the Alligator. Something like this one over here would have been nice. We're not getting that today. It's been quite a nice push for Apple today to be found almost two and a half percent, just over maybe. So we're knocking the signal on this one. Yeah, price is away from the Alligator quite comfortably away from it. And today's Monday, so this over here would have been a Friday, and we can see that was a divergent bar, but it is on the wrong side of the Alligator. We would need to be going that way for our first wise man signal. So there's nothing for us to on the Apple chart. We'll just leave that as it is, but we'll go through all 29 of the other companies on the Dow Jones Industrial Average. We won't pass comment on every single one, but certainly those ones of interest, and absolutely anyone's that we're going to enter a trade into, of course, those will be brought to attention.

Alrighty, so let's go to those other companies. Amgen pushing today has been for a while. You can see since end of February, times done about eleven and a half percent, really strong moves. Looking at Boeing here, and we do have a divergent bar. I get rid of that, you can see there, it is a clear reversal candle, there, bullish reversal. Survived if we get that Alligator back on, you can see it is really encroaching the entire candle, all over the Alligator. So therefore, that is not away from the Alligator and not a signal we can take. Another pharmaceutical company pushing to say that is Johnson & Johnson, up about a percent and a half. On Dow Inc., it is a bullish divergent bar, so it's going the wrong way here again to make us consider our next move. We'd want that candle flipped right around. Same with McDonald's, we've got a bullish divergent bar here, but we're already above the Alligator. Not for us.

All right, so none of these 30 stocks offer us an entry signal at the moment. That's fine. Tomorrow is another day. So we will be back for that, they're about the same time to check those 30 charts again, see if they give us an entry signal. That's what we're here for. Let's sit together and wait for the next 24 hours.

It's day number two. Here we are back on the charts at the end of another day, just coming up to 22:12. So we're gonna go through these charts now. We're looking for those divergent bars away from the Alligator. You can see price here on the Apple chart again, it's plenty far away from the Alligator, although we're not seeing an actual reversal candle. The day has reversed the gains of yesterday for Apple, but that doesn't mean it's a reverse entry for the purpose of our strategy. One last strategy. But William's strategy. American Express is seeing a bit of a divergent bar. It's not really a local high, but it is compared to the last few days, touching the Alligator though, all over the mouth, no signal. Same with Dow Inc. We are seeing a bearish divergent bar, but there's been quite a few of these star candles. You can see one there, one there, another one down here. It's not all we're looking for. Another day without entry signals for us. We've got to be patient. We've got to wait for the proper moves. So we'll just come back tomorrow, same time again, check those charts again.

Day number three of us checking these Dow stocks for that Profit Unity entry signal. What's Apple said? Another knock down for it today, and there you go, it's about two percent off, just a bit of a retracement after this long bull run, but certainly not a divergent bar, not for us. Let's check those other 29 stocks. Look how volatile Cisco Systems has been within this price range here over the last few months, between 57 and 58.52. Price has been bouncing up and down, up and down. Walt Disney, almost making a divergent bar. Price doesn't quite find its way back up into the upper half of the candle, but that's getting close to what we're looking for. Bullish divergent bar comes on IBM here. You can see price did push down throughout the day, back up, it's come in the green, back up to yesterday's closing price, but it is all over the Alligator. It is not away from there, never mind angulation, not happening. Three days in, it's still no entry signals for us, but that's okay. We got all the patience of Bill Williams inside of us, and so I'll wait for that proper Profit Unity entry signal. If we continue to not see divergent bar entry signals at all, then we will start taking it to the Awesome Oscillator, to the fractals, looking at one of those entry signals, just trying to get a trade out of this system somewhere along the line, and that sure would be good. Alternatively, we could open it up, we could open it up and check out all 500 of the S&P 500 companies. Got to be a divergent bar in there somewhere, one would imagine. Let's come back tomorrow, check those charts again.

It is day number four, and we are on our beloved Apple chart. Still not giving us a signal. Let's check those 29 others. Okay, here we go. We are on Boeing, and we see a bullish divergent bar. State the open and the close in the top half of the candle. We have pulled up the Average True Range indicator to make sure the divergent bar is away from the Alligator indicator. Currently reading a 7.18. So if we measure from the close of today's candle up, we go. We can see the entire Alligator above 1,000 points. The ATR is 718 points, so we are away from it. And these two gold trend lines here, they are marking out the angulation, so we are all good with the burn company. We got ourselves a signal. Let's remember that we're not actually getting into the trade, but we are going to set a buy stop order. So that's going to go here. We've called that $181. You can see the price on the right-hand side here. And we do know that if the trade got triggered and we were in it, that stop loss would be just below the divergent bar. So we're going to call that $170.50. You can see we've got these figures plugged in over here. So if I've done this correctly, I do think we should be in for around about 24 shares. That should be correct for a 200 risk from the entry to the stop loss. We can place this pending order on the bone chart, and there you go. So if price goes up, hits this green line here, we'll get into the trade. If it carries on down, well, no worries, nothing gained, nothing lost. There we go. That's our first Profit Unity trade set up, ready to go. Just for reference, on the second and third wise man, you can see with the Awesome Oscillator, the color of this bar here, that is red. So if price does turn, we get in the trade. If we get three Awesome Oscillator green bars in a row, and that's when we're looking getting in, it'll be another stop order, buy stop order in this instance. And in terms of fractals, we're not using this one. We'd have to see fractals form on this side of the Alligator. So we get a fractal here, say, and then price retraces beneath it, because that needs to happen for it to be a fractal. Then we can set the stop order and then potentially get in. But that is a long way off, not even in the trade yet. But at least it's all good to go. Fingers crossed we see something good here.

A few more companies to check still. You can see by the way here, down the bottom, that we are starting with $100,000 US dollars. We do see a bullish divergent bar on Dow Inc., but it's all over the Alligator. Can't take it seriously looking like that. Goldman Sachs is looking good too, though. We've got a bullish divergent bar again, right down here. You can see it's been trending downwards now, potential reversal occurring. We've got it away from the Alligator. ATR currently reading 876. You can see it's at least 1,800 points to the nearest Alligator line, so not worried at all about that. Angulation appears fine to me, so we can set ourselves a stop order on this one too, just above the high of today's divergent bar. We're going to call that $318, and for the stop loss, we'll go to $308. That's around 10 difference there, $318 to $308, just like 200 risk again. That's 0.2 percent of capital, keeping it pretty tight. We could get up to five sub-trades per each of these overall trades in Profit Unity, three fractals, one Awesome Oscillator, one reversal candle, so multiple percentage to be gained if we do get a good run going. Let's hope for the best and place that pending buy stop order. Setting ready on two companies now. Still more to check. They're rolling in. United Health Group wants to join the party as well. Fine by us. This one's a bearish divergent bar. The trend has been going away, that's what we like to see. Angulation maybe not the best, but I think it's just about there. Price has been pushing up while the Alligators remain mostly on a steady incline, so it is away from it. And see the Average True Range measurement again, 1,395 is the number to be. And there we go, we just passed that already, so easily away from it. Entrance price be $524, stop loss $539. All right, good to go on this one. Thirteen volume. This one's a sell stop order. Penny again, it's gonna go just below the low. We know that, and we've got it all set. Thirteen volume should be the number. So let's place it in. Looking good. Finally, then, signals coming in for us, exactly what we want. I want to get testing that Profit Unity strategy, and this is the only way now. We do nothing still for 24 hours until we come back and see if any of these trades got in, see if any of them are winning. So if so, day five it is.

The last day of the week, and some interesting developments now. Three stocks. Let's start with Goldman Sachs, because this one actually goes into a trade. You can see the lower the day is down here, so I'm just going to put up the 30-minute chart, and you can see how it opened up quite a bit lower down here before moving all the way up. That got us into the trade then, and it carried on nicely. It has slipped back just a little bit since then, and at the moment, it is basically hovering on our entry price. You can see the bid price line here, that little blue arrow there is pointing to where we got into the trade. So only a very, very modest 20 cent down at the moment, and it looks like we paid 40 cent commission on it. So not too bad overall. Shame we saw this drop off right at the end. Today was looking quite nice before that, but nevertheless, still good to see a trade going. And we can pull up the full Profit Unity. The Awesome Oscillator hasn't turned yet, but with a couple green days, it certainly will. That's when we'll be looking for our second wise man, the second entry, potentially. Let's not get ahead of ourselves. So it's just so we can get some profit off this one. We can keep the stop loss where it is yesterday, so. But if we do see higher lows coming along, we will trail that stop loss. That's Goldman Sachs.

Now let's take a look at Boeing. Price carried on downwards today. We were looking for that bullish entry. Is certainly it didn't get us into that. Moved further past it, and so that means we have lost the divergent bar chance. We don't just want to either stop order pending for all eternity. So as the signal is on it, we do get rid of it. Delete that one. That's Boeing on. Finally, United Health Group. We've lost the signal here as well. It was very close to giving us the signal again. You can see it definitely didn't get us into the trade. It just pushed upwards, but through the last half of the day, it has come back down. And if this close was in the bottom half of the candle, we could simply move the signal backwards, as it would still exist. We'd still have angulation, price would be further away from the Alligator, the signal would still be there. We just have to move the stop order, the sell stop order to this solar level, and move the would be stop loss above the new high in price. But it's not quite there. It's so close. You can see the high up here, and we're looking at the figures down in the bottom right-hand corner that appear when we hover over. We can see the high of the day is 548.89. So we'll round that up to 549. The low in price, we're going to round that to 530. So we've got 549 and 530. But the close is only at 540. So that's nine dollars off the high, 10 off the low. So therefore, closing price not in the bottom half of the candle, which is what we'd need to get the divergent bar signal again. So this pending order as well is going to be stopped off, just like burn. We'll get rid of that. We're left with Goldman Sachs alone. But let's see if there are any other signals waiting for us on those other Dow stocks. No extra stock orders for us to set today. So we are banking on Goldman Sachs going on a run for us. Start buying up all their shares if you want to see us do well. That is it, though. End of Friday in the week. We've got 72 hours. We're back on these charts, seeing what's good.