Alligator star FOREX strategy

Forex strategy utilizing combination of moving averages represented by single forex indicator – alligator, and trusted candle formations: morning and evening star. This chart formation together with statistical advantage provided by trading with moving average crossing offers a great entry signal with extremely favorable risk reward ratio.

 

This is ensured by using alligator to ride the trend as formation alone cannot provide good enough profit target (as it is entry formation).

 

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): Properly aligned alligator line will provide us with information regarding the trend direction. Fast MA (green) will notice us on trend losing momentum and enables us to exit the trade with profit.

 

Forex strategy rules

BUY:

Alligator line are properly aligned to uptrend (from top: green, red, blue) and untangled.

We will be looking for a morning star forex formation:

 

 

Morning star consists of three candles:

  • Wide bearish candle.

  • Narrow bearish or bullish candle closing below the first candle. Ideally gap is created between the two.

  • Wide bullish candle closing above the high of first candle. Once it closes signal is complete. We enter the trade long.

Stop loss is placed below the formation low.

Take profit: Take profit is initialized once green alligator line crosses red line downwards.

 

SELL:

Alligator line are properly aligned to downtrend (from top: blue, red,green) and untangled.

We will be looking for an evening star forex formation:

 

Evening star consists of three candles:

  • Wide bullish candle.

  • Narrow bearish or bullish candle closing above the first candle. Ideally gap is created between the two.

  • Wide bearish candle closing below the low of first candle. Once it closes, signal is complete. We enter the trade short.

Stop loss is placed above the formation high.

Take profit: Take profit is initialized once green alligator line crosses red line upwards

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“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

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