Dec 30

Alligator Indicator Forex Trading Strategy

Introduction to Alligator Indicator

Alligator indicator was introduced by Bill Williams in 1995. The name of this indicator sounds intimidating after all. We can make sure that it becomes the metaphor. There are three lines which can be found in this indicator. The lines will be overlaid on the chart of pricing. That is why people can see the representation of beast lips, teeth, and jaw. In forex trading strategy, this indicator is made for helping the trader for making confirmation of the trend presence as well as the direction of the current market trend. This indicator will also be useful for helping the traders to designate the impulse as well as the corrective wave formations. If people want to get the best work of this tool, they can try to combine it with the momentum indicator.

Alligator Indicator Forex Trading Strategy

Alligator Indicator Forex Trading Strategy

How to Use Alligator Indicator Forex Trading Strategy

People will be able to find numerous traits of the Alligator indicator. The mouth of the alligator will be closed when there are three lines entwined. In this condition, people can say that the alligator is sleeping. However, by minutes the alligator will get more craving and waiting for the breakout from the slumber for eating. The alligator will wake and then start eating when the shape of the trend is taken. The mouth of alligator will be closed once again once the alligator is satisfied. This can be the simple understanding which people can get when they want to use the alligator indicator in forex strategy. People will be able to find the alligator indicator very easily on the trading software of Metatrader4. There will be formula which is used by this indicator. The blue line can represent the jaw which is 13 periods smoother moving average, the red line can represent the teeth which is 8 periods smoother moving average, and green line can represent the lip of alligator which is five periods smoothed moving average.

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