Easy Trade with Alligator

Alligator is one of the default MT4 indicators created by Bill William. Why is named after alligator indicator? Because of the nature of these indicators are the same as the nature of the crocodile Alligator. Alligator crocodile nature is if it is full then he will sleep soundly. But if he is hungry, it will search for prey with its jaws open wide. In this case, has to do with forex trading is, if prices are sideways then this indicator will narrow (to each other) but not mutually crossed. However, when prices are trending then begins with extends this indicator that resembles the gaping jaws of a crocodile. Apparently, the nature of the alligator as it can be used for forex trading philosophy.

Basically, the Alligator is a combination of three indicator Moving Average, Smoothed by the method, Apply to the Median Price (HL/2), and in different shifts. The formation of the Moving Average 3 in such a way so that it can generate signals which can be used to determine the exact position of the open. Parts of the Alligator indicator is as follows:

1. Lips (MA) with the parameter period 5, shift 3

This MA is with the fastest period is useful to confirm when should you begin to open position.

2. Teeth (red MA) with the parameters shift, 8 periods 5

MA line is the medium period, the signal will be created if this line crossed the blue line.

3. Jaws (MA blue) with 13 parameters, shift 8

This line is the MA longest period line and used as a guide of the two other lines.

The Buy Signal

1. If the green line (5 MA) crosses the red line (MA 8) then both lines that cross the blue line (13 MA), so it looks together cut the blue line from bottom to up.
2. When the third line of the Alligator River crossing then it looks like the crocodiles are wide (open the mouth) into the top.

The Sell Signal

1. If the green line (5 MA) crosses red line (MA 8) then both lines that cross the blue line (13 MA), so it looks together cross the blue line from above to down.
2. When the third line of the Alligator River crossing then it looks like the crocodiles are wide (open the mouth) into the bottom

If the Alligator is sleeping then don't enter the market, because at the time it was sideways.  Alligator sign sleep is when the Alligator lines look squiggly near each other (see picture below).

Indeed the indicator Alligator right used by beginners because it is easy to understand especially when buy or sell signals occur at the time of the opening position. Unfortunately, sometimes the fit is less steady. That is because of the lagging nature of this indicator. In other words, when rates are moving fast and sharp price movements, generally these indicators will be late to respond.

So my advice is:

First: use this indicator on a major pair (EURUSD, GBPUSD) with a clear and stable trend.

Second: avoid news is important because during such important news release cause price movement very quickly and unexpectedly.

Okay, please try this indicator if need to be combined with other indicators such as MACD, stochastic or so as we gain enough valid signals. Remember, the only indicator as a tool, which can not guarantee 100% profit for its users, required patience and a deep understanding of a particular indicator. Therefore, a consistent exercise is needed in order to understand the indicators.