EUR/ZAR Alligator Forex Trading Strategy
The EURZAR Alligator Forex trading strategy is a unique trading system that is designed to generate profits off small and big price swings.
The use of the Alligator Metatrader 4 indicator is a good pointer to this strategy’s success within a wide range of time frames.
This is so because the Alligator indicator is very good at catching market trends in their formative stages.
Every trend following traders will love to have this system because of its sheer simplicity and capability to create vivid signals.
The strategy can be applied to all currency pairs and time frames, for the M1 up to the monthly chart.
MetaTrader 4 Indicators: Alligator.ex4 (Parameters Modified; Jaws period=18, Teeth period=13, Lips period=10), SwingMan-UltraSuperTRIX_PV_4col.ex4 (Inputs Variable modified; TRIX_Period=12, Colors Width Modified; #0=2, #1=2, #2=2, #3=2, #4=2, #5=2, #6=2)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: EUR/ZAR (EURO / South African Rand), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue line of the Alligator Metatrader 4 forex indicator crosses below the lime and red lines in a bottom up manner as illustrated on Fig. 1.0, bulls are said to be driving price higher, therefore a buy trigger is said to be imminent.
- If the SwingMan-UltraSuperTRIX_PV_4col custom indicator pops up a deep sky blue upward pointing arrow positioned on its horizontal level as shown on Fig. 1.0, this move normally precedes the formation of green & yellow green histograms above the zero signal level, and further typifies the start of a bullish trend.
Stop Loss for Buy Entry: Place stop loss 3 pips below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If during the course of a bullish trend, the blue line of the Alligator indicator intersects the lime line, it is pointing to diminishing bulls power, therefore a signal to exit or take profit at once.
- If SwingMan-UltraSuperTRIX_PV_4col custom indicator displays a red downward pointing arrow while a bullish trend is running (see Fig. 1.0), bulls are said to be leaving the market in their droves, as such an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue line of the Alligator forex indicator crosses above the lime and red lines in a top downward fashion as depicted on Fig. 1.1, the general market sentiment is said to be bearish, thus a signal to sell the designated forex pair.
- If the SwingMan-UltraSuperTRIX_PV_4col custom indicator displays a red downward pointing arrow that’s placed on its horizontal line as exemplified on Fig. 1.1, a move that heralds the formation of maroon & tomato histograms below the zero center level, price is said to be pressured lower, hence a signal to go short on the stipulated fx pair.
Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a bearish trend is runningand the blue line of the Alligator indicator intersects the lime line, bears power is said to be halting, as such a signal to exit or take profit immediately.
- If SwingMan-UltraSuperTRIX_PV_4col custom indicator displays a deep sky blue upward pointing arrow while a bearish trend is ongoing (refer to Fig. 1.1), more and more bears are said to be leaving the market, thus a signal to exit or take profit at once.
Sell Trade Example: EUR/ZAR (EURO / South African Rand), H1 Chart
About The Forex Technical Indicators Used
The Alligator is a technical indicator by Bill Williams, introduced in 1995.
The indicator is comprised of three lines that are overlaid on the activity chart.
The lines represent the jaw, the teeth and the lips of the Alligator.
Forex traders tend to use this indicator to gauge trend and its likely direction.
The SwingMan-UltraSuperTRIX_PV_4col indicator is an oscillator that deploys a gray line, arrows and histograms, all wrapped within its window for the purpose of defining trends.
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