The Averages Alligator Forex indicator for Metatrader 4 is an enhanced version of the traditional Alligator indicator and works better.
The indicator adds a longer-term moving average (yellow dotted) to the chart that defines the longer-term trend.
Key Points:
- Price above the longer-term moving average is considered bullish.
- Price below the longer-term moving average is considered bearish.
The Alligator system itself consists of 3 signal lines that cross each other in the direction of the underlying trend.
The following smoothed moving averages are used: 13 Jaws period, 8 Teeth period and 5 Lips period.
All input values can be easily modified by editing the indicator’s inputs tab.
General Assumptions:
- A strong buy trend occurs when price is positioned above all 3 Alligator moving averages AND above the longer-term moving average.
- A strong sell trend occurs when price is positioned above all 3 Alligator moving averages AND below the longer-term moving average.
For scalping and day trading, the indicator works best during the London and U.S. trading session.
Free Download
Download the “averages-alligator-indicator.mq4” indicator for MT4
Indicator Example Chart (EUR/USD Daily)
How to trade with it?
Open a buy trade as soon as the green Alligator line is positioned above the red and blue line AND the red Alligator line is positioned above the blue line + the pair must be trading above the yellow longer-term moving average.
Open a sell trade as soon as the green Alligator line is positioned below the red and blue line AND the red Alligator line is positioned below the blue line + the pair must be trading below the yellow longer-term moving average.
Place a stop loss above or below the blue 13-period Alligator signal line, or use your own stop loss placement method.
Possible profit targets ideas: Utilize a positive risk-to-reward ratio, exit the trade for a fixed profit target, close the trade as soon as an opposite trading signal appears on the chart…
Naturally, feel free to use your own favorite trading methods to open and close trades with the Alligator indicator.
Indicator Specifications
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Magic period, jaws period, jaws shift, teeth period, lips period, MA methods, colors, style
Indicator type: trend
Repaint? No.
Download Now
Download the “averages-alligator-indicator.mq4” indicator for Metatrader 4
Usage:
Works for any trade style: scalping, day trading and swing trading.
The indicator can be used as a standalone buy/sell trading system or it can be combined with various price action techniques.
Installation:
Open the Metatrader 4 platform
From the top menu, click on “File”
Then click on “Open Data Folder”
Then double click with your mouse button on “MQL4”
Now double click on “Indicators”
Paste the averages-alligator-indicator indicator in the Indicators folder.
Finally restart the MT4 platform and attach the indicator to any chart.
How to remove the indicator?
Click with your right mouse button in the chart with the indicator attached onto it.
Select “Indicator List” from the drop down menu.
Select the indicator and press delete.