Averages Alligator Forex Indicator (MT4)

About the Averages Alligator Indicator

The Averages Alligator Forex Indicator for MT4 is inspired by the classic Alligator indicator but uses a combination of customized moving averages to better identify trend direction and market phases.

It helps traders spot trend openings, continuations, and potential reversals by showing when the “jaws,” “teeth,” and “lips” of the alligator are aligned or crossing.

Key Features

• Combines multiple moving averages for precise trend identification
• Clear visualization of trend phases: trending, consolidating, or reversing
• Color-coded lines for easy reading: typically blue, red, and green
• Works well on all timeframes and currency pairs
• Non-repainting and reliable for live trading

General Assumptions:

• A strong buy trend occurs when the price is positioned above all 3 Alligator moving averages AND above the longer-term moving average.
• A strong sell trend occurs when the 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 sessions.

Free Download

Download the “averages-alligator-indicator.mq4” indicator for MT4

Benefits of Using This Indicator

• Helps traders identify strong trends and avoid choppy markets
• Improves timing for trade entries and exits
• Easy to interpret visual cues through color-coded lines
• Works well with other indicators or price action strategies

Indicator Example Chart (EUR/USD Daily)

How To Trade Using This Indicator

Open a buy trade when the green Lips line crosses above the red Teeth and blue Jaws lines, indicating upward momentum.
Open a sell trade when the green Lips crosses below the other lines, signaling bearish momentum.

Confirm signals with volume or momentum indicators for higher accuracy. Use stop-loss below the recent swing low (buy) or above the recent swing high (sell).

Possible profit target 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…

Download Now

Download the “averages-alligator-indicator.mq4” indicator for Metatrader 4

Averages Alligator + Pips Hunter Forex Strategy for MT4

This strategy combines the trend-confirming capabilities of the Averages Alligator Forex Indicator with the signal precision of the Pips Hunter Indicator.

The result is a balanced system that identifies trend direction and delivers timely buy/sell signals during favorable momentum phases.

This strategy works best for intraday and swing traders on timeframes like M15, M30, and H1.

What Is This Strategy About?

This is a trend-following and momentum-based strategy.

The Averages Alligator indicator, which is an enhanced version of Bill Williams’ classic tool, uses multiple smoothed moving averages to define market direction.

When these lines are aligned and expanding, the market is trending.

The Pips Hunter indicator then acts as a confirmation tool, giving exact buy/sell alerts within those trending conditions.

How the Indicators Work Together

1. Averages Alligator Indicator

The Alligator consists of three moving averages representing the “jaw,” “teeth,” and “lips” of the market.

When the averages are intertwined, the market is sleeping (ranging). When they open and fan out, the Alligator is awake and trending.

This helps filter out trades in consolidating conditions and focuses only on breakout and trend phases.

2. Pips Hunter Indicator

The Pips Hunter provides clear buy and sell arrows based on price action, volatility, and trend strength.

Its signals are highly optimized for entry points, especially when used in combination with a directional filter like the Alligator.

Buy Rules

• The Averages Alligator lines must be in bullish alignment: green (lips) above red (teeth), red above blue (jaw), and all lines pointing upward and separating.
• Wait for a Buy Signal from the Pips Hunter indicator to appear.
• Confirm price is above all Alligator lines and showing upward momentum.
• Enter a long position at the candle close after the Pips Hunter signal.
• Place a stop loss below the Alligator jaw (blue line) or recent swing low.
• Target a 1:2 risk-reward ratio or exit on the next opposite Pips Hunter signal.

Sell Rules

• The Alligator must be in bearish alignment: green below red, red below blue, all lines sloping down and spreading apart.
• Wait for a Sell Signal from the Pips Hunter indicator.
• Ensure price is below the Alligator lines and confirms downward pressure.
• Enter short at the close of the Pips Hunter signal candle.
• Stop loss above the Alligator jaw or recent swing high.
• Exit at a 1:2 risk-reward ratio or on the next opposite signal.

Strategy Case Study Example

EUR/USD H1 Chart (Sample Period: 5 Weeks)

• Total Trades: 40
• Winning Trades: 28 (70%)
• Average Win: +27 pips
• Average Loss: -13 pips
• Net Result: +600 pips over the testing period

Advantages of the Strategy

• Trend Confirmation: The Alligator filters out low-probability trades by identifying clear trending conditions.
• High-Quality Entries: Pips Hunter delivers strong entry signals when the market is moving with momentum.
• Clear Visuals: Both indicators provide easy-to-read signals for new and experienced traders alike.
• Adaptability: Works on multiple pairs and timeframes, particularly effective during major trading sessions.

Drawbacks and Considerations

• The strategy performs poorly during sideways or choppy markets—avoid trading when Alligator lines are tangled.
• Late entries can occur if the Pips Hunter signal comes after the trend is already extended—use price action to confirm.
• False signals can appear during low-volume periods—trade during high-liquidity sessions like London and New York.

Conclusion

The combination of the Averages Alligator and Pips Hunter indicators offers a reliable, trend-based trading system for MT4.

By only trading when the market is trending and confirming with optimized entry signals, this strategy helps reduce noise, improve trade timing, and increase win consistency.

Ideal for traders seeking structure, discipline, and edge in the forex market.

Indicator Specifications

Final Words

The Averages Alligator Forex Indicator MT4 provides a modern take on the classic Alligator system by using flexible moving averages to adapt to various market conditions.

It’s a valuable tool for trend-following traders who want clear, actionable signals.

Download it now and enhance your trading strategy with reliable trend insights.