This is forex strategy using phenomenal chart pattern – inside bar. Multiple entry ensures extremely high winning rate. To top it all, alligator forex indicator is used to take the trend following trade first. Improving results of standard inside bar trading tremendously.
Thanks to using alligator as all in one solution for trend identification strategy is easy to trade. It is recommended to trade it in timeframes above 15 minutes.
Pick a timeframe most suitable for your trading needs. Obviously trading in 15 min timeframe would require less free margin and signal would be more frequent (therefore trading it requires more of your time).
Trading this forex strategy requires a lot of attention, especially after entering the position. You need to be close to the chart to be able to handle frequent fakeouts.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Used forex indicators
Alligator forex indicator (26,16,1,). Alligator is actually just a combination of moving averages. We will be looking for alligator to be aligned accordingly to uptrend or downtrend to enter our first trade on candle.
Forex strategy rules:
We will be looking for inside bar candle: Candle with its whole range within the body of previous candle. Body of previous candle surpasses the whole range of our inside bar.
After we identify inside bar, first pending order is placed according to alligator.
Starting with SELL:
Pending sell order at the low of inside bar: Alligator lines lined according to downtrend, from top to bottom (blue, red, green).
Stop loss is placed at the opposite end of inside bar range, together with pending buy order with double the size of initial order.
In case that second order got triggered, we place one more pending sell order at the price of already closed first order.
We enter position up to three times to get our winner that will equal inside bar range. Once the third position on isinde bar moves to loss we accept it and move on to next signal.
Starting with BUY:
Pending buy order at the high of inside bar: Alligator lines lined according to uptrend, from top to bottom (green, red, blue).
Stop loss is placed at the opposite end of inside bar range, together with pending sell order with double the size of initial order.
In case that second order got triggered, we place one more pending buy order at the price of already closed first order.
We enter position up to three times to get our winner that will equal inside bar range. Once the third position on inside bar moves to loss we accept it and move on to next signal.
Notes: Inside bar as suggested includes partial martingale. We will enter the trade up to a three times. Doubling the size of order each time. If third order moves to loss we will lose 7X the amount of initial position. However, winner can be up to 50X times more frequent.
