This is a classic Larry Williams setup that still works in modern markets. The "Oops!" signal is a failed breakout strategy.
When the market gaps open below the previous day’s low (in a downtrend) or above the previous day's high (in an uptrend), amateurs often jump in, fearing they are missing the move. Williams argues that these moves often fail and reverse. the definitive guide to futures trading larry williams pdf
The "Oops!" strategy involves waiting for the price to reverse back into the previous day's range before entering a trade in the opposite direction of the gap. It is a brilliant lesson in market psychology: identifying where the "dumb money" is trapped and positioning yourself with the "smart money." This is a classic Larry Williams setup that
The one thing Larry does not emphasize enough in the 1979 PDF is position sizing. He was trading with a $10,000 account but placing trades that would require $30,000 in margin today. Williams argues that these moves often fail and reverse
The PDF is not a memoir; it is a technical manual. It introduces several concepts that have become standard tools in modern technical analysis.
Williams is famous for his prediction accuracy regarding the US stock market. In the guide, he dedicates a full chapter to the 4-year cycle (Post-election, Mid-term, Pre-election, Election year). He provides specific dates and expected volatility percentages for each phase.
Do not read the PDF for trade signals. Read it for psychology. Larry Williams is a master of cognitive risk management. Here is the modern interpretation of his three pillars: