alligator indicator mt4

The Alligator indicator is the super trend trading strategy that can determine classic buy/sell signals in forex and day traders in stocks.

This indicator consists of three smoothed moving averages, which connect to form cross-over signals in times of trend reverse.

When trading during the day, trends can be extremely unpredictable, particularly during volatile markets. In addition, the price is likely to reverse on smaller timeframes. But not all reverse attempts will result in the desired bullish or bearish trend. Therefore, it is essential to identify a trend-following move with a greater chance of achieving your goal.

In terms of accuracy in signal precision, it is a good indicator for signal accuracy. Alligator is a great alternative to linear and exponentially adjusted moving averages. But this indicator could delay a bit to verify the trend reversal in volatile markets.

How do you profit from day trading on forex in MT4 with the Alligator indicator?

Three moving average lines in the alligator are referred to as “lips,” “teeth,” and “jaws.” The lips and teeth are a five- and eight-period MA. The Jaws are the 13-period MA, which serves as the ultimate trendline support or resistance for the rate.

When a trend is in a downward direction, the lips are in the lowest position, the teeth remain in the middle, and the jaws rise towards the highest point. This indicates that the Alligator has shut its mouth, indicating that the market is in a bearish trend.

If you are buying a trade You can either leave the trade in your desired zone of entry or hold it until the alligator shuts its mouth. On the other hand, you should stop a short trade when the mouth of the alligator opens.

If you like to keep your goals open, you can try using trailing stops. Because it is the case that Jaws (13-period MA) works as a trendline that is dynamic, we can utilize it to establish the trailing stop’s position of active orders.

The alligator is also a sign of the strength and weakness of the current market trends. For instance, lines increase as the current trend becomes more pronounced. However, the squeezing of lines that look like alligators indicates the possibility of a future market that is sluggish.

Conclusion

The Alligator indicator helps traders maintain the proper position for longer periods of time. In the end, its trading strategy enhances the chances of earning an impressive profit margin when compared with risk. Beyond crossings, the alligator’s jaws, teeth, and lips can also detect possible support or resistance zones, as well as the trailing stop levels of active orders. In our opinion, the Alligator is a great indicator for novice day traders.