Forex Super ALLIGATOR System (How to Identify High Probability Price Trends)

High profits Forex Super ALLIGATOR System – The markets are Non Parametric and Random and generate trends on an average of 20%-30%.

Most of the money is made by FOLLOWING PRICE TRENDS.

There are many trading systems developed for Identifying market trends and Alligator Indicator is one of them.

It is a unique trading system using moving averages and was developed by Bill Williams in 1995.

 

Since Alligator indicator is developed using moving averages It is a lagging indicator used to identify price trends.

The Alligator indicator should not be used ALONE for taking trading decisions but should be used with other momentum indicators.

The aim of the alligator Indicator is to identify the price trend by using a combination of three smoothed moving averages .

The three moving averages are in Green, Red and Blue color (market in the image below).

• The BLUE LINE is known as the “jaw” of the alligator, it is usually the line on the top in a downtrend and vice versa for the uptrend.
• The RED LINE is known as the “teeth” of the alligator because it is between the jaw and the lips of the alligator.
• Lastly, we have the GREEN LINE that represents the “lips” of the alligator, this line is at the top in the uptrend and at the bottom in the downtrend.

The Alligator indicator is metaphoric because it represents the mouth of an alligator.

Sleeping period will give a way to the hunting period.

The longer it sleeps the hungrier it become therefore a stronger momentum will be in the markets.

The concept is about CONSOLIDATION and BREAKOUT, the longer the alligator sleep, means the longer the market is consolidating and after a long consolidation the breakout is usually bigger.

These three line for the Alligator’s mouth:

• Green – lips
• Red – teeth
• Blue –jaws

 

• Flat Market – the indicator lines intersect, the price fluctuates around the lines (it is believed that the “Alligator sleeps”). Usually, additional indicators at this time also show the flat state.
• Trend Market – lines are arranged in the direction of the trend (bullish – up, bearish – down) in a specific order (Alligator “opens mouth”). Additional indicators are also activated.

The fastest MA(5) (green) is first to react to the enhancing market – the line begins to reverse in the direction of a new pulse.

If the pulse continues and influences the price, it is followed by the reaction of the red line of MA(8) – a turn in the same direction.

The slowest MA(13) reacts the last – a blue line of the indicator.

 

No trading tool is perfect.

This means that we are always looking for ways to use multiple indicators together to try and shore up the weak spots.

When it comes to the Alligator indicator, for example, I might look at a trend indicator that uses a different methodology to see if it confirms the signals.

This would help us ignore false signals in the sleeping phase of the Alligator indicator and might also improve the timing of the signals.

• Best Time Frames: H1, H4, Daily, or higher
• Most Recommended Currency Pairs: GBPUSD, EURUSD, and all major pairs

 

• Exponential Moving Average
• Alligator
• Signal Trend
• Snake Force
• Filter overRSI
• Relative Strength Index

 

• White color 5 EMA line above the bullish alligator
• Red color 30 EMA line below the bullish alligator
• Snake Force lime color bars
• Filter overRSI blue color bars
• Relative Strength Index line upward and above level 50

 

 

• White color line 5 EMA below the bearish alligator
• Red color 30 EMA line above the bearish alligator
• Snake Force red color bars
• Filter overRSI red color bars
• Relative Strength Index line downward and below level 50

 

 

This is a very easy and profitable trading system.

The Alligator strategy is, of course, not new, but like any classical system, it is profitable, especially over long periods.

But, I recommend you to rigorously testing the trading system before use, in order to determine whether it actually yields positive results for you.
[sociallocker]

[/sociallocker]