Best Forex Swing Trading Strategy With Alligator Indicator

Friends……. Thanks a lot for visit here. This article earnmoneyfx.com research teams present Best Forex Swing Trading Strategy With Alligator Indicator as below.

Before exploring Best Forex Swing Trading Strategy With Alligator Indicator at first we learn to know
what is swing trading and What is Alligator Indicator.

What is Swing Trading?

Before applying the best forex swing trading strategy with the Alligator indicator, we must have to know what is swing trading.

Price never goes up or down with straight. Thus Price always goes up or down with zigzag or
swing.

In the Forex, Stock, and Commodities market various types of traders execute their trading. As like as
Position Trader, Breakout Trader, Momentum Trader, Swing Trader, Day Trader and
scalper etc.

Swing Trading is short term trading where traders try to achieve a profit within a short period
by using price swing.

The swing trader basically uses technical analysis to capture swing profit. Also, In addition, they add
fundamental analysis for confluence.

Swing trader always likes to trade trending market. Also, They always try to avoid the sideways market.

Swing trader’s rules are never investing in the long term. For that reason, they always invest in the short term. As like as In the daily chart five to ten days. Also, They execute their buy-sell in chart swing point.

 

What is Alligator?

Before applying the best forex swing trading strategy with the Alligator indicator, we must have to know what is alligator indicator is.

Alligator Indicator was introduced for the first time in 1995 by Bill Williams. Alligator consists of three
lines that represent the jaw, the teeth, and the lips. Also, Alligator Indicator helps traders to
identify the market situation, Is this market is sideways or trending? The Alligator indicator
can also help traders designate impulse and corrective wave formations, but the tool works
best when combined with a momentum indicator.

When Alligator is sleeping then her mouth is closed. That means the market is sideways now.
As long as Alligator sleep, Alligator will be more and hungrier.

Vice versa When Alligator wakes up and starts eating that means market is now trending.

Alligator Formula:

The Alligator indicator is common on Metatrader4 trading software and the calculation
formula sequence involves these straightforward steps:

1)    The Alligator’s Jaw, the “Blue” line, is a 13-period Smoothed Moving Average, moved
into the future by 8 bars;

2)    The Alligator’s Teeth, the “Red” line, is an 8-period Smoothed Moving Average, moved
by 5 bars into the future;

3)    The Alligator’s Lips, the “Green” line, is a 5-period Smoothed Moving Average, moved
by 3 bars into the future.

 

Let’s explore how to enter and exit Swing Trading with Alligator.

 

Image 1:

 

Swing Trading with Alligator Entry-Exit Strategy (SELL).

Let’s explore how the best swing trading strategy with the Alligator indicator works when you are going to SELL

Image point number – 1, We see the market is fully sideways. Also, alligator lines are in close
positions. That means Alligator is sleeping now. We know as long as Alligator sleep,
Breakout will be strong. Thus As a swing traders, we have nothing to do now. So we have to
wait for breakout sideways either up or down.

Image point number – 2, Candlesticks breakout sideways market. Also, Alligator lines are
going for each one. That means Alligator is now wake up. It’s dinner time of Alligator. And, This time
as a swing trader we have nothing to do now. So, We have to wait for the price come back Alligator
Line.

Image point number – 3, There we saw a fake reversal. We must have to ignore it because
as per Swing Trading With Alligator Entry-Exit Strategy, We never entry if price not come
Alligator line.

Image point number – 4, Candlesticks come back to the Alligator line. Thus we have to wait
for a reversal candlesticks pattern like Engulfing, Pin Bar, Inside the bar, etc. Here we saw
a strong long-tail pin bar. Great, It’s our Sell Signal.  For that reason, aggressive or conservative trader put
their SELL STOP order 2 pips below of this reversal candlestick.

Image point number – 5, After hit SELL STOP order aggressive trader place STOP LOSS 2
pips above of reversal candlestick. Also, Conservative trader place STOP LOSS 2 pips above of
swing High.

Image point number – 6, Conservative or aggressive trader place their take profit level on
near swing Low or 1: 2 or 1 : 3 risk-reward ratio.

 

Image point number – 7, Another swing trading entry and exit as per rules.

 

 

Image 2:

 

Swing Trading with Alligator Entry-Exit Strategy (BUY).

Let’s explore how the best swing trading strategy with Alligator indicator works when you are going to BUY

Image point number – 1, We see the market is fully sideways. Also, alligator lines are close
positions. That means Alligator is sleeping now. We know as long as Alligator sleep,
Breakout will be strong. Thus As a swing trader, we have nothing to do now. So, We have to
wait for breakout sideways either up or down.

Image point number – 2, Candlesticks breakout sideways market. Also, Alligator lines are
going so far each one. That means Alligator is now wake up. It’s lunchtime of Alligator. This time
as a swing trader we have nothing to do now. So, We have to wait for the price come back Alligator
Line.

Image point number – 3, Candlesticks come back to the Alligator line. So we have to wait
for a reversal candlesticks pattern like Engulfing, Pin Bar, Inside the bar, etc. Here we saw
a strong long-tail pin bar. Great, It’s our BUY Signal. Thus, Aggressive or conservative trader put
their BUY STOP order 2 pips above of this reversal candlestick.

Image point number – 4, After hit BUY STOP order aggressive trader place STOP LOSS 2
pips below of reversal candlestick. Also, Conservative trader place STOP LOSS 2 pips below of
swing Low.

Image point number – 5, Conservative or aggressive trader place their take profit level on
near swing High or 1 : 2 or 1 : 3 risk-reward ratio.

Image point number – 6, Another swing trading entry and exit as per rules.

 

—— Thanks for giving- your valuable time to read this article ——–