Alligator Indicator

Alligator indicator description

It is also one of the most common instruments among financial market players. Although it may seem difficult to work with, but it is actually plain and simple, and you don’t need to study its capabilities for a long time to start working with it.

When working with this tool, traders understand that the market has trends, moods, but often it does not have a pronounced dynamics in a certain direction. If the traders have a clear attitude, using it, they get their profit, and it will become the main source of their income. In those moments, when the market «sleeps», it is customary to «leave» it and wait out such unprofitable stages. To track certain moods of the change in assets correctly, such an indicative tool as Alligator was developed by B. Williams, who also created several binary options indicators. What is «Alligator»?

In general, it is a smart combination of several tools, moving averages of different colors and period that are responsible for the structure of the figure of «Alligator». The tool got its name due to the fact that when working on the chart, it forms a shape of the alligator. Tracking the state of the figure you can make a decision about trading. Alligator is widely used due to such a plain and simple interpretation of the market phases. By tracking the changes of Alligator, it is easy to understand the state of the market, enter the transaction in time, and limit yourself from trading binary options when it is unprofitable to the player. It is one of its significant benefits and, certainly, this is the tool that was immediately accepted by the trainers.

It is believed that if these figures are intertwined, the tool is «asleep» or just planning to fall asleep. At the same time, the longer it is in a state of sleep, the greater its appetite will be. After waking up it opens its mouth, yawns, then feels some «food», and begins its search. After eating it loses any interest to this «food», and all the moving averages converge.

Enter the broker’s terminal, add the indicator Alligator to the chart and see what happens next.

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Calculating formula

MEDIAN PRICE = (HIGH + LOW)/2,

ALLIGATORS JAW = SMMA (MEDIAN PRICE, 13, 8),

ALLIGATORS TEETH = SMMA (8, 5),

ALLIGATORS LIPS = SMMA (5, 3), где:

MEDIAN PRICE — median price,

HIGH — maximum value,

LOW — its minimum value,

SMMA (A, B, C) — smoothed moving. А — these are smoothed data, В — period, С — offset parameter to the future. For instance, SMMA (MEDIAN PRICE, 5, 3) means that this moving comes from the median price, smoothing period here is 5 bars and the offset is 3.

 

Benefits of the indicator

Alligator is one of the most popular trend tools, because it is plain and simple, easy to use, graphically shows some generated information. It is usually used when it is important to understand the phases of the market, state of the traded asset, filter the stages of the lack of a clear trend (in the side range). For trading you can use three moving averages with periods 8, 5 and 13, as well as the median value. Correctly using its capabilities, you just need to monitor the current mood of the dynamics of assets and make a profit from it.

Alligator is fair to consider as a separate effective strategy for trading which, unlike complex trading techniques with different tools, generates correct information, is quite indicative and clear during trading. It is used by both beginners and market professionals who rely on information about the stages of «life» of Alligator: the phases of sleep and hunting. The tool is able to determine the moments of entering the market correctly, as well as those situations when it is better to avoid trading on it in order to reduce your losses.

It is known that most players work in the market during well-defined trends, and, investing money in an order, they get their profit from price fluctuations in a certain direction. Certainly, investors recommend confirming information of this trending tool with the help of, for example, Stochastic, but it is still a reliable assistant when working with different assets, in a variety of strategies and trading styles. So, when working with this tool, you shall pay attention to 4 phases:

  • Awakening of Alligator when its teeth are pulled away from the jaw, indicating the emergence of a new trend.
  • Alligator is «eating» and its lips tend to cross the green moving.
  • It has «eaten enough», when its teeth went down to the lower limit and show the peak of the trend.
  • It is «asleep» and its three lines are either slightly intersected or are close to each other and indicate the completion of the trend.

The main benefit of the tool is that, using it, you do not need to spend a lot of time on the interpretation of its data. Moreover, there is no way to interpret this information in two ways – everything is plain and simple.

 

How to add Alligator to MetaTrader 4 terminal?

Most of the trading platforms that are popular among the players pay great attention to providing their customers with the maximum options for the convenience and functionality of trading. Convenience, speed and availability of different features are the reasons why the players choose the platform. MT4 is a solution that has earned the trust of players in practice: there are a lot of useful features. Here is easy to implement any method, to hold the auction, to track the dynamics of the assets, to carry out the auto-trading. Moreover, there are many standard indicators, including Alligator. To start working with this tool, you just need to add it to the chart. Next, it is possible to implement it for a quick setup. Now what is left, it’s only to click «OK» and that`s all – you can work with it:

How to add Alligator in MetaTrader 4

 

How to add Alligator to MetaTrader 5 terminal?

Exactly like its previous version, the terminal became popular with investors immediately after its appearance on the market. Here, in addition to the availability of all the advantages of MT4, there are even more useful options, including a set of indicators originally installed for operation. There is also an Alligator. The program also makes it easy to perform the required settings depending on the strategy of working with the asset. Next, all you need is just to add it to the chart using the «OK» button:

How to add Alligator to MetaTrader 5 terminal

 

How to add Alligator to a broker’s terminal?

Although this broker is considered to be one of the best in the market, but one of its significant drawbacks is that there are several tools available for technical analysis of asset dynamics and only 4 indicators. It is inconvenient and players use third-party platforms to trade. They do not have Alligator, so, in order to use its features; a player will also have to move to another platform.

One of the solid benefits of this brokerage platform is that its clients use one of the powerful and functional terminals. There is a maximum of opportunities: graphical tools, asset selection, the impressive set of indicators for the implementation of a variety of strategies and techniques, etc. Here you can use Alligator too. In order to add it to the main work space, you only need to click on the «Technical analysis Indicators» button, placed for convenience in the lower toolbar of the program. In the opened list you need to select it, and by clicking on its name, add it to the chart. This broker offers to work with advanced settings of instruments, and it is also convenient. After setting up the tool it remains only to minimize the settings panel and start trading:

How to add Alligator to the Binarium terminal

The platform of this trading firm will also be comfortable for the players with different trading experience — there are many tools, including a set of indicators that can be easily and quickly configured. There is also Alligator. In order to attach it to the chart, you need to open the list of indicators. The button of the same name is located on the bottom panel of the platform:

How to add Alligator to the Binomo terminal

Here you can study all available tools for trading and choose Alligator. Players can also customize it as required for the strategy. Then all you need is just to click «Build» and that`s all — you can work:

Alligator indicator in Binomo terminal

 

How to install Alligator to terminal?

Certainly, many trading platforms have Alligator and it is undoubtedly convenient for traders, but not all companies have a functional terminal. In this case, if the platform has an option of adding the trading tools for free, it will be its benefit, and a trader can use it. For example, MT4 platform offers unlimited opportunities for players, where they can add any number of tools. At the same time, this process is simple and accessible to a trader with any experience. Here you only need to find a tool file on the Internet or download it from our website and add it to a special program directory. In the opened folder you need to go to the folder with indicators:

How to install Alligator to terminal

Here you can find the tools to add to the platform:

How to Install Alligator in Metatrader 4

After adding the necessary tool file you only have to restart the trading program (it means, close and open it again), check its presence in the custom indicators and add it to the trading chart:

Setting the Alligator indicator in Metatrader 4

 

Signals for trading with Alligator

To use all the features of this powerful tool properly, you need to know what kind of signals it generates — we will discuss it in the next part of our review.

Performance change. In this case it is very simple to work with the tool:

  • If, during the price correction, the green moving average went down under the blue moving average and, showing a reversal, and crosses it in the upward direction, it is necessary to execute the lots CALL.
  • If, during the price correction, the green moving average went up over the blue moving average and crosses it down, it is recommended to execute the lots PUT.

Finding the market phase:

  • In the case of flat the moving averages of the instrument are intertwined. It means that there is no trend in the market, and therefore it is better not to enter the trade.
  • When the moving averages of the instrument are separated and have a clear direction, you can track the trend and use it in your work as follows:
  • If a value line is above the moving averages of the instrument, which, in turn, is directed upwards, it is an upward mood. In this situation you can execute the lots UP. If it is directed downwards, there is a downward mood in the market, and you can work with the lots DOWN.

Finding the trend:

The signals allow defining new moods, using data of moving averages of the tools, which, first, have the intertwined position and then, after choosing of the direction, go up or down. At the same time, the longer Alligator is in a state of chaos, the stronger the trend will be:

  • If, at the end of the flat, the instrument «wakes up» and wants to «eat», the trend will gain strength: the green moving average goes down under the blue moving average, there is a reversal and then the green one crosses up the blue one. In this case you can execute the contracts UP.
  • If the tool «wants to eat» and the green moving average goes up under the blue one, the green one crosses down the blue one, then it is recommended to work with contracts DOWN.

 

Alligator signals in MetaTrader 4

  • Performance change

Completion of rates UP:

Alligator Signals in MetaTrader 4: completion of rates UP

Completion of rates DOWN:

Alligator Signals in MetaTrader 4: completion of rates DOWN

  • Finding the market phase

Flat at the market:

Alligator market signals in MT4: flat

Execution of CALL rates:

Alligator market signals in MT4: CALL rates

Execution of PUT rates:

Alligator market signals in MT4: PUT rates

  • Trend search

Purchasing contracts for increase:

Alligator's market trend signals in MT4: COLL options

Purchasing contracts for fall:

Alligator Market Trend Signals in MT4: PUT Options

 

Alligator signals in MetaTrader 5

  • Performance change

Execution of CALL rates:

Alligator Signals in MetaTrader 5: execution of CALL rates

Execution of PUT rates:

Alligator Signals in MetaTrader 5: execution of PUT rates

  • Finding the market phase

Flat at the market:

Alligator market signals in MT5: flat

Completion of rates UP:

Alligator Signals in MetaTrader 5: completion of rates UP

Completion of rates DOWN:

Alligator Signals in MetaTrader 5: completion of rates DOWN

  • Trend search

Purchasing contracts for increase:

Alligator market trend signals in MT5: COLL options

Purchasing contracts for fall:

Alligator market trend signals in MT5: PUT options

 

Alligator signals by Binarium

  • Performance change

Completion of rates UP:

Alligator signals in the Binarium terminal: rates UP

Completion of rates DOWN:

Alligator signals in the Binarium terminal: rates DOWN

  • Finding the market phase

Execution of CALL rates:

Alligator's market signals at the Binarium terminal: COLL rates

Execution of PUT rates:

Alligator's market signals at the Binarium terminal: PUT rates

  • Trend search

Purchasing contracts for increase:

Alligator's market trend signals in the Binarium terminal: COLL options

Purchasing contracts for fall:

Alligator's market trend signals in the Binarium terminal: PUT options

 

Alligator signals by Binomo

  • Performance change

Completion of rates UP:

Alligator signals in the Binomo terminal: rates UP

Completion of rates DOWN:

Alligator signals in the Binomo terminal: rates DOWN

  • Finding the market phase

Completion of rates for increase:

Alligator's market signals in the Binomo terminal: COLL options

Completion of rates for fall:

Alligator's market signals in the Binomo terminal: PUT options

  • Trend search

Purchasing contracts for increase:

Alligator's market trend signals in the Binomo terminal: COLL options

Purchasing contracts for fall:

Alligator's market trend signals in the Binomo terminal: PUT options

 

Trading strategies with Alligator

  • Alligator + MACD

This is one of the productive methods that, thanks to the use of accurate tools (MACD and Alligator), will guarantee an increase in profits — about 20% during the week. In this case, Alligator allows you to identify the current market moods, as well as their early change. MACD also shows the change of trends, here is used as a filter of information. Both of these tools, in such a «duet», are aimed at obtaining correct data to enter the auction and increase the deposit.

In order to place CALL rates you shall identify the following situation on the asset chart: MACD shall move in the upward direction; the second service also shows the upward direction, its blue and green moving averages cross and go up. To apply for a position PUT the chart shall show the situation by which MACD goes down; while the second service is also directed downward, its moving averages cross and go down.

  • «Berlingo»

This system is the result of extensive work in the binary market, the product of studying its regularities. It is focused on high-speed trading and will be a suitable strategy for players with any trading experience. Due to the use of serious services, it can generate accurate data and bring a decent income: Best Holy Grail Indicator V3 is based on the work of the services: Alligator, Bollinger Bands and Ichimoku and is able to determine short-term corrections and medium-term trends; USC Murrey Math Oscillator is an oscillator that instantly responds to the minimum dynamics, is needed here as a source of signals; CM_Stochastic POP Method 1_V1 – here is an additional tool that can filter out false information in time and thus maximize the capabilities of the system.

In order to place the position UP, you shall wait for the following signals: CM_Stochastic POP Method 1_V1 shall show growth by moving average; at that by Best Holy Grail Indicator V3 the moving averages cross down; USC Murrey Math Oscillator framed up above 0 is turning green. In order to frame the positions DOWN, one shall wait for the appearance of the following tool signals: CM Stochastic POP Method 1_V1 by moving average shall show the fall; while the moving averages by Best Holy Grail Indicator V3 cross down, at this time there is an intersection down of its moving averages; USC Murrey Math Oscillator framed up under 0 and is turning red.

  • «Mirror»

This high-class scalping system is focused on a stable acceleration of capital. It is based on the use of effective tools with perfect algorithms and fast response to the dynamics of assets. Using this method of trading in the derivatives market, you can open about 15 positions, and 87% of them will be profitable. The following services are used in the strategy: the powerful tool CM Renko Overlay Bars V1 is essential when searching for new trends; TDMACD is a variant of the tool which is familiar for traders that is capable to generate even more accurate indicators for entering into transactions; Williams21EMA13 is an oscillator based on such instruments as MA and Alligator. All these indicators offer a trader a high-tech working method that generates accurate signals.

To search for the moments of the growing trend you shall use the following set of signals: CM_Renko Overlay Bars V1 shall form the crosses (green) under the candlestick of value; TDMACD by using the fast moving average has to break the slow, upward one; however, Williams21EMA13 shall confirm the growing trend, showing clear divergence upward of its moving averages. To find situations of a falling trend, the following set of signals is recommended: CM_Renko Overlay Bars V1 shall form crosses (lilac) above the candlestick; TDMACD by using the fast moving average breaks a slow, downward one; at the same time, Williams21EMA13 shall confirm again the appearance of the falling trend by means of a clear divergence down of its moving averages.

This system created by an unknown trader makes it easy to work with the market efficiently, to analyze it more effectively and improve the state of the account dynamically. At the heart of its work is the use of two powerful trend tools. The combination of their capabilities allows you to get the turning point of trends and appearance of new moods. The role of Alligator in this system is to generate information about market phases; the role of MACD is to identify market reversals. Both of these tools are insurance and information filters that generate correct information about the benefit position in the market.

To search for signals of a growing trend, you shall use the following set of signals of this methodic: the green moving average of Alligator breaks up the rest of its lines, which is the identification of the trend growth; while the white MACD moving average crosses up the red that indicates a mood change.


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