Popular Alligator Forex Strategy That Works
The popular Alligator Forex strategy works for any currency pair and timeframe without exception.
As with all other forex strategies, none is ever 100% correct.
However, the positive signals are consistent enough to offer you an edge.
Interpreting and understanding this strategy is quite an easy task.
In addition, the Popular Alligator Forex Strategy is designed to reveal when trends are starting off and at the same time never missing out on spotting reversals in the market.
MetaTrader4 Indicators: Alligator.ex4 (Default Setting), pz-lopeztrend-indicator.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the blue line of the Alligator Metatrader 4 indicator intersects the green and red lines in a bottom up manner, while price stays above the lines as shown on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to go long on the selected forex pair.
- If the line of the pz-lopeztrend-indicator turns deep sky blue as indicated on Fig. 1.0, price is said to be pressured higher, therefore a buy signal will suffice.
Stop Loss for Buy Entry: Place stop loss below medium-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the lines of the Alligator indicator entwine during a bullish signal, it is indicative of a bearish reversal, hence an exit or take profit is recommended.
- If the line of the pz-lopeztrend-indicator turns tomato during the course of a buy signal (see Fig. 1.0), price is said to be making a U-turn away from its earlier bullish stance, therefore an exit or take profit is duly advised.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the blue line of the Alligator indicator intersects the green and red lines in a top downward fashion, while price hovers below the lines as illustrated on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to go short on the currency pair of focus.
- If the line of the pz-lopeztrend-indicator turns tomato as indicated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss above medium-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the lines of the Alligator indicator entwine during a bearish signal, it is suggestive of a bullish reversal, hence an exit or take profit will do.
- If the line of the pz-lopeztrend-indicator turns deep sky blue during the course of a sell alert (refer to Fig. 1.1), price is said to be making a U-turn away from its earlier bearish stance, therefore an exit or take profit is duly recommended.
Sell Trade Example
About The Trading Indicators
The Alligator is an 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 (blue line), the teeth (red line) and the lips (green line) of the Alligator.
Traders tend to use this indicator to gauge trend and its probable direction.
The pz-lopeztrend-indicator.ex4 is deployed to track market trends via a dual colored line surrounded by a dotted line price bands that sits above and below the dual colored line.