Octopus Gator Forex Trading Strategy

If you intend on trading the currency markets, then you should consider scalping the markets using the Octopus Gator forex trading strategy.

A strategy that is designed for use on low spread FX pairs and can be applied only on 1-Minute, 5-Minute and 15-Minute trading charts.

Chart Setup

MetaTrader4 Indicators: octopus_2.ex4 (default setting), r_Gator.ex4 (period modified; 28, bars modified; 3000000)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: Any (London, New York, Tokyo)

Currency Pairs: EUR/USD, GBP/USD, USD/CHF, USD/JPY, AUD/USD, USD/CAD + low spread forex cross pairs

Download

Download the Octopus Gator Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy entry if the following indicator or chart patterns are on display:

  1. If the green bars of the octopus_2 custom indicator forms within its indicator window, price is said to be pressured higher i.e. a trigger to go long on the pair of interest.
  2. If the lines of the r_Gator.ex4 custom indicator intersect with price trading somewhat above those lines, it is an indication that price is being pushed to the upside i.e. a signal to go long on the pair of interest. Note how the lines align the red line is beneath, the blue line is in the middle, while the green line is on top (refer to Fig. 1.0).

Stop Loss for Buy Entry: Place stop loss 1 pip below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions hold sway:

  1. If the bars of the octopus_2.ex4 custom indicator turns red during an uptrend as seen on Fig. 1.0, price is said to be making a reversal, as such an exit or take profit will suffice.
  2. If the lines of the r_Gator.ex4 custom indicator intersect with the red line aligning at the top while the blue and the green lines are beneath, an exit or take profit is advised under such conditions.

Sell Entry Rules

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

  1. If the red bars of the octopus_2.ex4 custom indicator forms within its indicator window, price is said to be pushed lower i.e. a trigger to go short on the pair of interest.
  2. If the lines of the r_Gator.ex4 custom indicator intersect with price trading somewhat below those lines, it is an indication that the market sentiment is bearish i.e. a signal to go sell the asset of interest. Note here that the lines align in a manner in which the red line is topmost, the blue line is in the middle, while the green line is beneath (refer to Fig. 1.1).

Stop Loss for Sell Entry: Place stop loss 1 pip above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions take precedence on the activity chart:

  1. If the bars of the octopus_2.ex4 custom indicator turns green during a downtrend as seen on Fig. 1.1, price is said to be making a reversal, as such an exit or take profit will do.
  2. If the lines of the r_Gator.ex4 custom indicator intersect with the red line aligning at the bottom while the blue and the green lines are above, an exit or take profit is advised.

Sell Trade Example

Fig. 1.0

Free Download

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About The Trading Indicators

The Octopus_2.ex4 is a forex trend indicator, a modification of an earlier version (octopus_1) and forms bars or histograms within its main window.

Green bars are indicative of a buy signal, while red bars indicate a sell signal.

The r_Gator.ex4 is an indicator that takes after the Alligator MT4 indicator (since they show comparable values of MA periods).

The r_gator.ex4 only produces its signal earlier than the Alligator.

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