Alligator Trend Forex Trading Strategy

The Alligator Trend forex trading strategy integrates the sinTrend and the popular Alligator indicator in generating buy and sell trade signals.

Trading based on the rules or conditions of this strategy can lead to more accurate signals, thereby resulting to more profitable positions.

Chart Setup

MetaTrader4 Indicators: sinTrend.ex4 (default setting), Alligator.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: Majors and Cross Currency Pairs

Download

Download the Alligator Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If price opens and closes above the lines of the Alligator indicator, with the lines stacked in such a manner that has the green line at the top, red line in the middle and the blue line is placed under, while price is trading somewhat above the line, a buy signal is said to be in place.
  2. If the yellow histogram of the sinTrend.ex4 custom indicator forms above the 0.00 signal level, it is an indication that price is being pressured higher i.e. a buy signal.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions are on display:

  1. If price closes below the green line of the Alligator indicator as shown on Fig. 1.0, it is a trigger to exit or take profit accordingly.
  2. If the histograms of the sinTrend.ex4 custom indicator decline to form below the 0.00 signal level, it is a signal that price is on the verge of reversing, as such an exit or take profit is appropriate.

Sell Entry Rules

Enter a sell in the market if the following holds true:

  1. If price opens and closes below the lines of the Alligator indicator, with the lines stacked in such a manner that has the green line at the bottom, red line in the middle and the blue line is placed on top, while price is trading somewhat below the line, a sell signal is said to be in place.
  2. If the yellow histogram of the sinTrend.ex4 custom indicator forms below the 0.00 signal level, it is an indication that price is being pressured lower i.e. a sell trigger.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following chart or indicator pattern gets on display:

  1. If price closes above the green line of the Alligator indicator as shown on Fig. 1.1, it is a trigger to exit or take profit accordingly.
  2. If the histograms of the sinTrend.ex4 custom indicator decline from the downside to form above the 0.00 signal level, it is a signal that price is on the verge of making a U-turn, as such an exit or take profit is appropriate.

Sell Trade Example

Fig. 1.1

Free Download

Download the Alligator Trend Forex Trading Strategy

About The Trading Indicators

The Alligator is an indicator by Bill Williams and was introduced in 1995. The indicator is made up of three lines that are overlaid on the activity chart.

The lines represent the jaw, the teeth and the lips of the Alligator. Traders tend to use this indicator to gauge trend and its possible direction

The sinTrend.ex4 indicator was issued by Nikolay Kositsin, in 2005. This indicator can be used on intraday time frames as well as for long term trading.

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