Binary options aligator strategy

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The Alligator indicator is good at pointing to the periods of high market volatility and can, therefore, help you determine optimal entry and exit points. What is Alligator Basically, the Alligator is a combination of three moving average lines with different periods, often called the jaw, the teeth and the lips. Each of them is shifted ahead for a certain period of time, so that all three align perfectly with each other.

Here is how to read this indicator. During the flat market, all three lines are close together. When the trend becomes obvious, the lines drift apart.

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The trend is essential no matter what asset and on what time frame you are trading. The Alligator, therefore, can help determine optimal entry and exit points by revealing the strength of the current trend.

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Choose Alligator from the list of available options. The indicator is ready to use.

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For those of you just strating their trading journey it may be wise to use it with default paramters. How to use in trading There are several ways to put the Alligator into action. As you probably already know, it can help you determine the strength of the prevailing trend.

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In trading, not only the direction of the trend matters. Its strength can be just as important, especially on shorter time intervals. When the distance between the jaw, the teeth and the lips of the Alligator increases, the trend is becoming stronger.

  • How to use alligator strategy in binary options
  • It is used in any trend strategies to improve the accuracy of projections.
  • When the trend takes shape, the Alligator wakes and starts eating.
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And vice versa. When the lines come in touch with each other, the trend is most certainly dying out.

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The signal provided by the Alligator soon translated into a new trend Binary options aligator strategy is not the only way to apply the Alligator to trading, as the indicator can pinpoint trend reversal points. For an upward trend, the lips will be situated above the two other lines, while the intersection of the teeth and the jaw lines should be observed.

This indicator is usually being offered within the standard settings of every trading platform, including MetaTrader or Jforex. These platforms can be found online for free. The Alligator is a quite interesting indicator since it looks like a group of various moving averages and it requires for the interpretation to be as such. How to Use the Alligator Indicator In Trading The main idea which is presented behind the indicator is the one which in case the price is trending the lips of the alligator represented by the green line should be the initial point that should be added to a position in the same direction as the main trend.

For a downward trend, the lips will be found below the two other lines. The intersection of the teeth and the jaw should also be present. For better results the Alligator can be combined with any oscillator-type indicator Awesome, Stochastic etc.

It was developed by Bill Williams, the famous trader and author of a popular book Trading Chaos. Using the Alligator binary options trading strategy by Bill Williams, you can know in time that the market broke out of the sideways, new trend presence and its direction. This helps you figure out the right market entry point for binary options trading. When you plan trading, you need to have in mind the public holiday calendar and the days the stock market is closed. The strategy is based on the Alligator indicator showing three moving averages.

Conclusion The Alligator is easy to try but hard to master. Also keep in mind that all indicators, no matter how well-adjusted and used, can return false results. Always keep that in mind and check the signals received on different timeframes and from different indicators. Any references to historical price movements binary options aligator strategy levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.

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You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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