{"id":4186,"date":"2020-05-20T14:27:00","date_gmt":"2020-05-20T11:27:00","guid":{"rendered":"https:\/\/roboforex.com/blog\/?p=4186"},"modified":"2026-05-26T10:56:07","modified_gmt":"2026-05-26T07:56:07","slug":"trading-the-alligator-fractals-strategy","status":"publish","type":"post","link":"https:\/\/roboforex.com/blog\/blog\/2020\/05\/20\/trading-the-alligator-fractals-strategy\/","title":{"rendered":"Trading the Alligator+Fractals Strategy"},"content":{"rendered":"\n

Today, we will speak about one of the most popular Forex strategies<\/a> called Alligator<\/a>+Fractals. It was designed by a famous market psychologist and successful trader Bill Williams in the 20th century, however, it remains topical nowadays.<\/p>\n\n\n\n

Alligator+Fractals belongs to trend strategies, which means it does not work in the times of a flat<\/a>.<\/p>\n\n\n\n

This strategy is multicurrency, however, observations show that it works better on instruments with a small spread, such as most basic currency pairs and metals. With high-volatile instruments, it may give false signals<\/a>.<\/p>\n\n\n\n

You may use any timeframe<\/a>; however, on smaller ones, signals will be multiple but their quality may worsen. On H4 and longer timeframes, signals will demonstrate better quality but appear more rarely. A trade will be working off for several days if not weeks. The size of Stop Losses<\/a> on large timeframes may exceed the size allowed by your risk management. However, the profit may be huge compared to the Stop Loss<\/a>.<\/p>\n\n\n\n

<\/span>The Fractals and Alligator indicators: the base of the strategy<\/span><\/h2>\n\n\n\n

This strategy is based on two indicators<\/a> designed by Bill Williams and included in most trading terminals by default:<\/p>\n\n\n\n

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  1. Fractals<\/li>\n\n\n\n
  2. Alligator<\/li>\n<\/ol>\n\n\n\n

    <\/span>Fractals indicator settings<\/span><\/h2>\n\n\n\n

    The Fractals indicator<\/a> looks like an arrow above a Japanese candlestick or a bar and points at the price extreme. For a Fractal to appear, the following conditions are necessary:<\/p>\n\n\n\n