Strategy for traders
Getting Started
Introduction
Alligator Lines
Pivot Levels
Trading Methods
Introduction
The Alligator Strategy
Created by Bill Williams (profitunity.com)
Useful for
Day traders, Short term traders & Position traders
Our version applies to trends, corrections & V revresals
Alligator Lines
The Alligator has three lines
Green, Red & Blue
These lines are specially calculated indicators
The lines are overlayed over a price chart
Patterns are formed by interaction of Alligator with Prices
Specific patterns give trading signals
Trend
A clear trend is available when Alligator lines are in proper order.
In an uptrend:
Green is at top, Red in middle & Blue is the lowest
In a downtrend:
Blue is at top, Red in middle & Green is the lowest
In a sideways market, the lines are mixed up.
Pivot Levels
Significant highs & lows
In an uptrend, breakout above Pivot high is a buy signal
In a downtrend, breakdown below Pivot low is a sell signal
When Alligator is sleeping, both, buy & sell signals come
Trading Methods
Method 1: Sleeping Alligator
Alligator lines are intertwined
Trend Continues:
Alligator sleeps for few bars after New Highs/Lows
Trend Reverses:
Alligator sleeps in distribution / accumulation
After some whipsaws, a new trend emerges
Method 2: Slow Reversal
Often, reversal in trend comes by:
Slow change from the original trend to the new trend
The the three Alligator lines change direction without going through a process of 'sleeping'
An entry signal comes when the strategy detects a V reversal.
Method 3: Reentry from Range
Strongly trending market
Prices go sideways for a few bars
Alligator lines remain properly aligned
Usually touch Red ot Green lines
Probably a correction - low risk entry
Method 4: Reentry from Pivot
Strongly trending market
Small sideways consolidation
Alligator may not be touching prices
Pivot is available, nearby
Pivot breakout / breakdown provides entry
Disciplined Trading
Trend Mechanic is an online data,advisory & software service
The Alligator strategy is available in Trend Mechanic
A daily newsletter provides regular tips on using the Alligator
Enhance your trading to the highest level with Trend Mechanic
Getting Started
Introduction
Alligator Lines
Pivot Levels
Trading Methods
Introduction
The Alligator Strategy
Created by Bill Williams (profitunity.com)
Useful for
Day traders, Short term traders & Position traders
Our version applies to trends, corrections & V revresals
Alligator Lines
The Alligator has three lines
Green, Red & Blue
These lines are specially calculated indicators
The lines are overlayed over a price chart
Patterns are formed by interaction of Alligator with Prices
Specific patterns give trading signals
Trend
A clear trend is available when Alligator lines are in proper order.
In an uptrend:
Green is at top, Red in middle & Blue is the lowest
In a downtrend:
Blue is at top, Red in middle & Green is the lowest
In a sideways market, the lines are mixed up.
Pivot Levels
Significant highs & lows
In an uptrend, breakout above Pivot high is a buy signal
In a downtrend, breakdown below Pivot low is a sell signal
When Alligator is sleeping, both, buy & sell signals come
Trading Methods
Method 1: Sleeping Alligator
Alligator lines are intertwined
Trend Continues:
Alligator sleeps for few bars after New Highs/Lows
Trend Reverses:
Alligator sleeps in distribution / accumulation
After some whipsaws, a new trend emerges
Method 2: Slow Reversal
Often, reversal in trend comes by:
Slow change from the original trend to the new trend
The the three Alligator lines change direction without going through a process of 'sleeping'
An entry signal comes when the strategy detects a V reversal.
Method 3: Reentry from Range
Strongly trending market
Prices go sideways for a few bars
Alligator lines remain properly aligned
Usually touch Red ot Green lines
Probably a correction - low risk entry
Method 4: Reentry from Pivot
Strongly trending market
Small sideways consolidation
Alligator may not be touching prices
Pivot is available, nearby
Pivot breakout / breakdown provides entry
Disciplined Trading
Trend Mechanic is an online data,advisory & software service
The Alligator strategy is available in Trend Mechanic
A daily newsletter provides regular tips on using the Alligator
Enhance your trading to the highest level with Trend Mechanic