5 best forex alligator trading system and strategy. The indicator was discussed in bill williams book known as trading chaos. The indicator was created as a means to identify trend changes using the behavior of each of the three components of this indicator.
Market players should confirm buy or sell signals with a macd moving average convergence divergence or another trend identification indicator. High accuracy forex alligator system and strategy bill william s alligator indicator provides a useful visual tool for trend recognition and trade entry timing but it has limited usefulness during choppy and trendless periods. The indicator uses a smoothed average calculated with a simple moving average sma to start.
The williams alligator indicator is a technical analysis tool that uses smoothed moving averages. The video includes a demonstration with a chart of real market prices to show how the indicator may provide. This video explains what the alligator indicator is what it s for and how to use it.
It consists of three lines overlaid on a pricing chart that represent the jaw the teeth and the lips of the beast and was created to help the trader confirm the presence of a trend and its direction. The alligator is as much a metaphor as it is an indicator. Bill williams introduced the alligator indicator in 1995.
Jaws at the bottom blue then teeth red then lips green on top. For an uptrend to be true and valid 3 lines jaws teeth and lips of alligator indicator must be laid out appropriate way. Alligator indicator helps to determine the presence and absence of a trend as well as its direction.
How to trade with alligator indicator. When the market is ranging the alligator is sleeping. Since the market evolves from trend to range we can think of the market much like an alligator.
How does the alligator indicator work.
How to use alligator indicator in forex. The alligator indicator is a great forex trading tool that has been fascinating traders for a long time. While not a moving average riding trends is its main quality this article shows how to use the alligator indicator in forex in a profitable trading way. In the next article on the alligator indicator we will put all of this information together to illustrate a simple trading system using this alligator indicator. More forex indicators risk statement.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Alligator indicator forex example. There are custom indicators for various charts including metatrader to make it easy to apply these averages to your charts.
There are custom indicators for various charts including metatrader to make it easy to apply these averages to your charts. Alligator indicator forex example. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.
More forex indicators risk statement. In the next article on the alligator indicator we will put all of this information together to illustrate a simple trading system using this alligator indicator. While not a moving average riding trends is its main quality this article shows how to use the alligator indicator in forex in a profitable trading way.
The alligator indicator is a great forex trading tool that has been fascinating traders for a long time.
