{"id":4319,"date":"2020-06-04T16:06:29","date_gmt":"2020-06-04T13:06:29","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=4319"},"modified":"2026-05-26T10:56:06","modified_gmt":"2026-05-26T07:56:06","slug":"mastering-alligator-trading-strategy","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2020\/06\/04\/mastering-alligator-trading-strategy\/","title":{"rendered":"Mastering Alligator Trading Strategy"},"content":{"rendered":"\n

In this overview, we will discuss a trading strategy<\/a> called Alligator<\/a><\/strong>. This is a slightly simplified variant of a well-known strategy by Bill Williams<\/strong> \"Profitunity<\/strong>\".<\/p>\n\n\n\n

<\/span>Description of the Alligator<\/span><\/h2>\n\n\n\n

The strategy has the same name as its main indicator<\/a> - Alligator. The idea of the strategy is finding signals<\/a> to buy\/sell based on the combination of the signals of three indicators<\/a> by Bill Williams: Alligator, Awesome Oscillator<\/a>, and Fractals.<\/p>\n\n\n\n

The Alligator indicator<\/a> is the main indicator of the strategy, it defines the trend. When the three main lines of the indicator (Moving Averages<\/a>) are going horizontally, intertwined, the market features no clear trend. Conversely, when the lines diverge and go in one direction (up or downwards), this forecasts a possible beginning of a new trend.<\/p>\n\n\n\n

The Awesome Oscillator<\/a> is based on the difference between two Simple MAs. It helps to define the current trend and find the places of possible reversals on the chart. The indicator looks like a bar histogram under the price chart. If the market is growing, the bars also grow and turn green, and when the market is falling, the bars follow suit and turn red.<\/p>\n\n\n\n

The Fractals indicator<\/a> shows the local highs and lows reached by the market on the chart. The extremes are highlighted by special directed marks. Fractals demonstrate the borders of local price ranges in many strategies, including the Alligator.<\/p>\n\n\n\n

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<\/span>Basic principles of the Alligator trading strategy<\/span><\/h2>\n\n\n\n

To start trading by the Alligator, the market must be sleeping, i.e. the Jaws, Teeth, and Lips of the Alligator indicator must be intertwined, going horizontally. The Awesome Oscillator must be near 0. The entry signal will appear when the Alligator lines and the Oscillator will start moving in one direction; it will be confirmed by a breakaway of the nearest fractal on the chart.<\/p>\n\n\n\n

To start looking for trading signals, install all the three indicators of the strategy on the price chart of your financial instrument. You may either use the default settings or play with them and find those that suit your trading style. In MetaTrader 4 <\/a>and MetaTrader 5<\/a>, install the indicators via the Main Menu: Insert - Indicators - Bill Williams - Alligator, Awesome Oscillator, Fractals.<\/p>\n\n\n\n

\"Install<\/a>
Install the indicators Alligator, Awesome Oscillator, Fractals<\/figcaption><\/figure>\n\n\n\n

<\/span>A signal to buy by the Alligator strategy<\/span><\/h2>\n\n\n\n

A signal<\/a> to buy appears when a sleeping period changes for an upward movement. To enter the market, make sure that the following conditions are complied with::<\/p>\n\n\n\n