As for a stop loss when using the Alligator, consider using a multiple of the average true range or use previous swing high and lows. The most important part of the Bill Williams Alligator is when the 3 lines are mixed together. This is when the Alligator is considered to be sleeping and no trading signals are present. You should keep these instruments on your radar especially if price action is hinting at an increase in momentum.

The best time to get on board a trend move is just before it happens. While you may not be able to pick the exact price the trend begins, getting in as close to the beginning as possible should be your goal. When the Alligator is feeding, watch for pullbacks against the main trend direction and trade those moves with a pullback strategy.

As with any trading strategy, it is vital that you test it, lay out a trading plan, and ensure risk management is priority one. Trading the financial markets is not as easy as many make it out to be. Hope you have learned how to use the Alligator indicator as a possible technical indicator to aid in your trading. Here are a few other tutorials that you may find of interest:. Trading With The 50 Period Moving Average. Hey John. I personally trade daily charts. Any timeframe you choose, make sure to test it.

With moving averages on lower time frames, you can get a ton of whip back and forth. Thanks for explaining Alligator indicator in detail! i have with bb bands, and moving averages. so thanks. This site uses Akismet to reduce spam.

Learn how your comment data is processed. Learn To Use Alligator Indicator In Your Trading. February 9, Posted by: CoachShane Categories: Trading Article, Trading Indicators 6 Comments. Markets trend and market range and the 3 lines of the Alligator indicator, known as the jaws teeth and lips, is designed to alert traders to the presence of either of those market states From those states, a trader can determine if they will use a range trading strategy , a trend trading strategy, or wait for a breakout strategy to be used.

What Is The Williams Alligator Indicator? If using a trading platform such as Tradingview, you will have access to the complete indicator.

How Does The Alligator Indicator Work? Since the market evolves from trend to range as Williams has stated, we can think of the market much like an Alligator and how it lives in the wild: When the market is ranging, the Alligator is sleeping When the market shows signs of a trend, the Alligator wakes up There comes a time when the Alligator wants to eat.

This is generally a time of low volatility and most traders may want to find another instrument to trade Possible trend forming The lips of the Alligator, the green line, is the fastest moving average and will be the first one a trader will want to monitor. Trend formed and direction Considering an up trend, the green line lips , crosses the red and sometimes the blue line depending on the market state.

Alligator Indicator Explained What Is A Williams Alligator Trading Signal When the 3 lines of the Alligator indicator are intertwined, the Alligator is sleeping. Think of a market that is ranging — we know it will break out and the longer the range continues, the more violent the breakout can be As the green line starts to cross the lips opening , we could be looking at an Alligator getting ready to feed.

However, when it enters into a trend, it wakes up and starts eating and again it goes back to sleep mode. This is how the process continues. In a perfect uptrend, you will find green greater than the red and redline greater than the blue line. Similarly, in a downtrend, you will find blue followed by red and then green.

You should always enter the trade when it is entering into a particular trend and avoid when these lines are twisted together. The Alligator indicator is easily available on various charting platforms and it is done using the following steps-. Know More : How to trade using moving average on different timeframes?

Look for proper trading setup in the daily time frame whether on the upside or downside. 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. But as it bounced back in 4-hour chart, you will make your entry in the minute chart when the alligator gives a positive or negative crossover as the case may be.

The same logic of multiple timeframes can be applied in various time frames including a very short- term to very long term. You may combine Alligator indicator with a momentum-based indicator like CCI to enhance your trading experience and to get better trading signals. Say when the alligator awakes and you found that CCI has already entered the overbought area i. Such a lag in getting a trade signal leads to a partial loss of profit.

Further, this lag functions as a filter and helps eliminate insignificant and false signals. Elearnmarkets ELM is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all.

You can connect with us on Twitter elearnmarkets. Hi there! I am really struck on my back testing using data in Excel. In the following articles, I will bring along some classic trading strategies with this indicator. Goodbye and see you again. Save my name, email, and website in this browser for the next time I comment. Since then we have continuously created the new and improved the old, so that your trading on the platform is seamless and lucrative.

Our team has world-class analysts. They develop original trading strategies and teach traders how to use them intelligently in open webinars, and they consult one-on-one with traders. Education is conducted in all the languages that our traders speak. Contact: [email protected]. General Risk Notification: trading involves high-risk investment. Do not invest funds that you are not prepared to lose. Before you start, we advise that you become familiar with the rules and conditions of trading outlined on our site.

Any examples, tips, strategies and instructions on the site do not constitute trading recommendations and are not legally binding. Traders make their decisions independently and this company does not assume responsibility for them. The service contract is concluded in the territory of the sovereign state of Saint Vincent and the Grenadines. The services of the company are provided in the territory of the sovereign state of Saint Vincent and the Grenadines.

Education Chart Patterns Candlestick Pattern Indicators Crypto Wallet Forex Class Knowledge Fundamental Analysis Psychology Class Technical Analysis Indicators Candlestick Patterns IQ Option IQ Option Tutorial IQ Option Strategies IQ Option Blog Olymp Trade Olymp Trade Tutorial Olymp Trade Strategies Olymp Trade Blog Option Platforms Binomo Binomo Tutorial Binomo Strategies Binomo Blog ExpertOption ExpertOption Blog ExpertOption Strategies ExpertOption Tutorial eToro.

Sign in. Log into your account. your username. your password. Privacy Policy. Password recovery. your email. English Tiếng Việt Português فارسی How To Trade Blog Crypto Wallet Education Candlestick Pattern Indicators. Forgot your password?

Get help. How To Trade Blog. Home Technical Analysis Indicators What Is The Alligator Indicator?

Tiếng Việt Português فارسی. Williams Alligator is a technical indicator created by renowned trader Bill Williams based on several of his successful systems and strategies. The basis of this indicator is that three moving averages with different market periods will make it easier for traders to trade. So what is the Alligator indicator? Today, I will guide you on how to use the Alligator indicator in Forex trading with the highest efficiency.

This indicator is named Alligator because its behavior is similar to an alligator. An Alligator indicator consists of three parts: teeth, jaws, and lips. This indicator is used to help traders determine market movements and make decisions. Or you can use it to find the right time to enter the market. On the price chart, the Alligator indicator is a set of 3 SMMAs:. Each shape of the Alligator indicator on the price chart tells us a unique state of the market.

Although the way it works is simple, the signals given by the Alligator indicator are very accurate for forecasting the upcoming trend. That is why Alligator is very popular with trend-trading traders. Here, I will guide you on how to use the Alligator indicator to search for effective Forex transactions. Please stay tuned and follow to check the effectiveness of the Alligator indicator. This is a quite risky trading strategy when the signal to open orders is based on the Alligator indicator only.

However, if the price goes according to your prediction, the profit will be maximum. You will catch the first waves in a new trend. Open a BUY order using the Alligator indicator:. The alligator jaws open and point up.

Open a SELL order using the Alligator indicator:. The alligator jaws open and point down. With this trading strategy, your orders are somewhat safer. You will use the Alligator indicator to confirm an ongoing trend before opening an order. However, this trading strategy requires you to wait patiently.

You need to wait for the price retest when a trend occurs. Open a BUY order when the Alligator indicator signals an up trend the 3 SMMAs extend and head up as follows:.

The price will retest the support which is the old resistance after breaking out to form an uptrend. Open a SELL order when the Alligator indicator signals a down trend the 3 SMMAs extend and head down as follows:.

The price will retest the resistance which is the old support after breaking out to form a downtrend. Above is just a basic guide on Forex transactions to get acquainted with the Alligator indicator. In the following articles, I will bring along some classic trading strategies with this indicator. Goodbye and see you again. Save my name, email, and website in this browser for the next time I comment. Since then we have continuously created the new and improved the old, so that your trading on the platform is seamless and lucrative.

Our team has world-class analysts. They develop original trading strategies and teach traders how to use them intelligently in open webinars, and they consult one-on-one with traders. Education is conducted in all the languages that our traders speak. Contact: [email protected].

General Risk Notification: trading involves high-risk investment. Do not invest funds that you are not prepared to lose. Before you start, we advise that you become familiar with the rules and conditions of trading outlined on our site.

Any examples, tips, strategies and instructions on the site do not constitute trading recommendations and are not legally binding. Traders make their decisions independently and this company does not assume responsibility for them. The service contract is concluded in the territory of the sovereign state of Saint Vincent and the Grenadines. The services of the company are provided in the territory of the sovereign state of Saint Vincent and the Grenadines.

Education Chart Patterns Candlestick Pattern Indicators Crypto Wallet Forex Class Knowledge Fundamental Analysis Psychology Class Technical Analysis Indicators Candlestick Patterns IQ Option IQ Option Tutorial IQ Option Strategies IQ Option Blog Olymp Trade Olymp Trade Tutorial Olymp Trade Strategies Olymp Trade Blog Option Platforms Binomo Binomo Tutorial Binomo Strategies Binomo Blog ExpertOption ExpertOption Blog ExpertOption Strategies ExpertOption Tutorial eToro.

Sign in. Log into your account. your username. your password. Privacy Policy. Password recovery. your email. English Tiếng Việt Português فارسی How To Trade Blog Crypto Wallet Education Candlestick Pattern Indicators. Forgot your password? Get help. How To Trade Blog. Home Technical Analysis Indicators What Is The Alligator Indicator? How To Trade Forex Safely With It. What Is The Alligator Indicator? Contents hide. Trade Forex following the trend.

RELATED ARTICLES MORE FROM AUTHOR. How To Trade Forex With All-in Strategy And Unlimited Leverage. Martingale Betting System In Forex Trading — Is It Good Or Bad?

Loss-Holding — An Insane Money Management Method In Forex Trading. How To Maximize Profits With Profit-Holding Money Management In Forex. What Is Trailing Stop? How To Use It To Make More Profits In Forex. LEAVE A REPLY Cancel reply. Please enter your comment! Please enter your name here. You have entered an incorrect email address! EDITOR PICKS. How To Register And Login Binomo Account April 13, The Fastest Way To Earn Money In Olymp Trade: Compound Interest And 1 Minute July 3, POPULAR POSTS.

Position Trading Strategy — How Pro Traders Make Money On Etoro November 8, What Is Fundamental Analysis In Forex Trading? December 3, POPULAR CATEGORY. ABOUT US. About Us Privacy Policy Disclaimer Risk disclosure Terms of Use Contact. MORE STORIES. Flash - February 17, 0.

This is the ideal scenario for uptrend or downtrend. October 25, So what is the Alligator indicator? Luckily, the calculation is not required in practice. VISIT ELM SCHOOL. Facebook-f Twitter Instagram Linkedin-in Youtube Telegram. The indicator applies convergence-divergence relationships to build trading signals, with the Jaw making the slowest turns and the Lips making the fastest turns.

Categories:

• Binary Options online
• Forex Bitcoin
• Binary Options
• Forex
• Forex Brokers