Alligator indicator forex trading

alligator indicator forex trading

The alligator indicator is very useful in trending charts - both upwards and downwards - to decide the right time to enter or exit a trade. Alligator · "Most of the time the market remains stationary. · Bill Williams · In principle, Alligator Technical Indicator is a combination of Balance Lines . Alligator isn't the only indicator created by Bill Williams. Nonetheless, it's famous among forex traders all around the world. M CAPITAL ONE INVESTING FOR GOOD

This is the ideal scenario for uptrend or downtrend. You should always enter the trade when it is entering into a particular trend and avoid when these lines are twisted together. Say you identified the buy or sell setup in daily time frame but due to lag you may miss the initial move. Also read: 5 important uses of RSI But as you know that price does not move in a straight line but moves in a series of peaks and troughs.

So you may aim to enter a wave in a smaller time frame say 4 hours in a different direction to find a good entry point. Here you will wait for the alligator to move against the daily signal. In simple words, you are looking for a wave inside the flow to identify the move in a different direction so as to identify a proper entry point.

You found the uptrend in the daily timeframe so you will wait for the downtrend in 4 Hour chart. Similarly, once you identified downtrend in daily, you will look for the uptrend in 4 Hour chart. Of which he dreamt up in to help better predict where a current trend in the market may be heading. Williams was something of an innovator in the trading world. He was one of the first to implement the notions of behavioral science and psychology into his own indicators and analysis tools.

His conclusion? That Forex traders make most of their money while the market is dormant, i. When the market awakens, new trends and movements present both opportunities and risks to the trader. These depict price movements and, animal analogies aside, the alligator indicator, when used alongside other forms of technical analysis, is a time-served tool that some traders have been using successfully for decades.

What is the Alligator indicator in forex? The visual representation of the Alligator Indicator also helps to reveal to traders what their next move should be. The three lines of the indicator can all be entwined at once — as shown on the charts. When this is the case, the alligator is said to be sleeping. Typically, this is said to be a sell signal — usually followed by the candlestick pattern showing as such.

But as the alligator awakens, he gets hungry — his mouth opens and the chart lines separate. This is often considered to be a buy trigger. Of course, the Forex alligator strategy — like all such systems — is not an exact science. There can be deviations from the mean.

But, as a general guide, it can be deployed successfully, as it has been for decades. How is the Alligator indicator used?

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How to use Williams Alligator Trading Indicator - Trading Indicators alligator indicator forex trading

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