They are moving averages with various parameters. Here they are:The first line, or the chap of alligator, is a line of balance to the considerable period. It is used for the chart constructing - 13 period smooth shifting average, moved on 8 bars to the al,igator. Alligator forex indicator strategie Fotex line, or the lips of alligator, is the line of balance for the considerable period of time, which is one more step less - 5 period smooth shifting average, moved on 3 bars to the future.
The Red line, or the teeth of alligator, is the line of balance for the considerable period of time, which is one step less - 8 period smoothed shifting average, moved on 5 bars to the future.How does one interpret the lines. In that article, we covered the background of the Alligator indicator, how it is calculated, and how it looks on a chart. It consists of three lines, overlaid on a pricing chart, and indicqtor created to help the trader confirm the presence of a trend and its direction.
Since trends may only occur 20% to 30% of the time, the indicator helps a trader keep his powder dry until a valid trend is present. Once the trend forms, the Alligator helps the trader remain in his position. How to read an AlligatBill Williams introduced the Alligator indicator in 1995. The Alligator is as much a metaphor as it is an indicator.
It consists of three lines, overlaid on a pricing chart, that represent the jaw, the teeth and the lips of indjcator beast, and was created to help the trader confirm the presence of a trend and its direction. As he sleeps, he gets hungrier by the minute, waiting for a breakout from his slumber when he will eat. When the trend takes shape, the Alligator wakes and starts eating. Once satiated, the Alligator closes his mouth once again and goes to sleep. Alligator FormulaThe Alliga0 Forex Strategy Alligator forex indicator strategie Alligator IndicatorA typical trend-following strategy composed of an 144 period simple moving average along with the Alligator indicator.
The Alligator indicator is a technical indicator which based on three simple moving averages with different periods and forward offset. Thank you for your readership. MACD is a popular default indicator used for different strategy. We will use MACD and Alligator indicator in this strategy. These two indicators will help to find trend direction and we will find our trade set-up. This strategy will be profitable as we will take entry in the trend direction.
New comers can also find signal from this strategy. Required indicators: (1) MACD (Default setting). click here to know, how to set MACD (2) Alligator Indicator (Default setting). click here to know, how to set Alligator indicator How to get buy signal We will search for buy entry in the uptrend market. When market price cross above alligator indicator then we need to get confirmation from MACD.
When MACD appears above 0.0 level, then we will get buy signal. Look at the chart example below in the picture. There are two buy setup strateyie in the picture.