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Alligator Indicator basics
Alligator Indicator is a trend indicator that uses three lines to verify the trend. This indicator was developed by a legendary trader Bill Williams, in 1995. According to his research and development, he found that the market behaves just like an Alligator. He believed that the market is inactive or sleeping 70% – 80% of the time and the rest 20% – 30% market is active. The lines of the indicator when intersects each other are points of buy and sell.
Why Alligator Indicator
- Alligator Indicator is one of the popular technical Indicators that uses smoothed moving averages.
- This indicator is really easy to use. You just need to focus on the intersection points of three lines. which creates buy and sell opportunities.
- This indicator applies convergence and divergence relationship to build the trading signals with the Jaw making the slowest turns and lips making the fastest turns.
- The indicator can give even more highly profitable trades if used with trend confirmation indicators like support and resistance, RSI and more.
How to integrate Alligator Indicator on Pocket Option trading platform
Firstly, log in to your Pocket Option account. and click on the indicator button. Next search and select Alligator Indicator from the menu.
You can also change the colours of the indicator or darken the line for better visibility.
How to use Alligator Indicator at Pocket Option trading platform
You won’t find any issues in understanding the concept of the Alligator Indicator Strategy. The concept is very easy. You just need to focus on the lips of the alligator. This indicator is made of three lines Lips, Jaw, and Teeth. Where the lips is the fastest line with the combination of 5 SMA and 3 bars whereas, the Jaw is the slowest line with the combination of 13 SMA and 8 bars. The teeth is the middle line with the combination of SMA 8 and 5 bars.
How to Open buy Trade
When the Lip line intersects the other two lines from the bottom and later the lip line is above the two lines in an uptrend. It signals a bullish crossover and here we should open a buy trade.
How to open sell trade
When the lip line intersects the two other lines from the top. and later the lip line stays at the bottom of the two other lines. It signals a bearish trend and here we can place a sell trade.
You have just understood the concept of the Alligator indicator. This indicator is super easy to use and you can make lots profitable from the same. The best thing you can do is try this indicator at the Pocket Option demo account and move to the Pocket Option real account when you are confident enough.