In Forex, we know of the bulls and bears but, alligators? Yes, alligators.
The alligator indicator is designed to determine the presence or absence of a trend and the trend’s direction.
For an uptrend, all three lines must be in their appropriate position, jaws at the bottom (blue), teeth in the middle (red), then lips on the top (green).
The opposite is true for a down trend: the jaws on top (blue) the teeth in the middle (red), and the lips at the bottom (green).
The Personality of the Alligator
If you did not know, alligators sleep a lot. They hang out by the river bank, napping, dreaming about eating hundreds of fish, deer, donkeys, and whatever else it can find.
After sleeping, an alligator can be hungry. When an alligator finally wakes up, it is ready to prey on some poor inferior animals.
The market can be described in a similar fashion. Sometimes the market can be ranging and ranging and ranging and then finally, BOOM! Break out!
The alligator indicator can show us when the trend is birthed.
More Indicator Articles
Why Use Indicators?
How to Trade the Parabolic SAR
Using Murray Lines
Forex Power Indicator
Using Simple Moving Averages
Ichimoku Kinko Hyo Indicator
Average True Range (ATR)
Latest posts by admin (see all)
- Money Management in Forex: More Than Just Trading - February 17, 2018
- Identifying Trends through Synchronization - February 17, 2018
- Using Multiple Trendlines to Identify Better Trades - February 15, 2018
Winner’s Edge Trading, as seen on: