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Swing Trading With Alligator Indicator

Swing Trading With Alligator Indicator

Swing Trading With Alligator Indicator

 

 

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below.

Swing Trading with Alligator Entry Exit Strategy:

Before explore Swing Trading with Alligator Entry Exit Strategy at first we learn to know
what is swing trading and What is Alligator Indicator.

What is Swing Trading?

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

In the Forex, Stock and Commodities market various types trader execute their trading. E.g.
Position Trader, Breakout Trader, Momentum Trader, Swing Trader, Day Trader and
scalper etc.

Swing Trading is short term trading where trader try to achieve profit with in short period
by using price swing.

Swing trader basically use technical analysis to capture swing profit. Little time they add
fundamental analysis for confluence.

Swing trader always likes to trade trending market. They always avoid sideways market.

Swing trader never investment for long term. They always invest for short term e.g. In daily
chart five to ten days. They execute their buy sell in chart swing point.

What is Alligator?

Alligator Indicator was introduce first time in 1995 by Bill Williams. Alligator consists three
lines which represents the jaw, the teeth and the lips. Alligator Indicator helps traders to
identify 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 are sleeping then her mouth is closed. That means market is sideways now.
As long as Alligator sleep, Alligator will be more and hungrier.

Vice versa When Alligator wake 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 entry and exit Swing Trading with Alligator.

 

Image 1:Swing Trading With Alligator Indicator

 

 

 

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

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. 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. Its time to eat Alligator. This time
as a swing trader we have nothing to do now. We have to wait for 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 Alligator line. Now we have to wait
for reversal candlesticks pattern as like as Engulfing, Pin Bar, Inside bar, etc. Here we saw
strong long-tail pin bar. Great, It’s our Sell Signal. 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. 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 Indicator

 

 

 

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

 

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

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

Image point number – 3, Candlesticks come back to Alligator line. Now we have to wait
for reversal candlesticks pattern as like as Engulfing, Pin Bar, Inside bar, etc. Here we saw
strong long-tail pin bar. Great, It’s our BUY Signal. 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. 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.

 

 

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