The Alligator Trend indicator for Metatrader 5 is developed by Bill Williams to help traders identify bullish and bearish market trends more easily.
It’s composed of three colored moving averages:
- Blue Jaw line: represented by a 13- period smoothed moving average.
- Red Teeth line: represented by a 8- period smoothed moving average.
- Green Lips line: represented by a 5- period smoothed moving average.
The following indicator inputs and parameters can be modified: Jaws period, Teeth period, Lips period, shift, moving average period, applied price (median).
The Alligator indicator works equally well across all trading instruments offered on the MT5 charting platform.
Tip: you can combine the Alligator indicator with other technical analysis tools and various techniques to increase the probability of successful Forex trades.
Make yourself familiar with this technical tool and test it first on a practice account until you fully understand how it works.
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The picture below illustrates how the Alligator Trend indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Alligator Indicator?
Find a simple trading strategy below:
- A bullish trend is confirmed when the green Lips line is positioned above the red Teeth line and blue Jaw line.
- Initiate a buy trade and place a protective stop order below the previous swing low price.
- Exit the buy trade for a profit target of your preference, or wait for a bearish trend reversal signal.
- A bearish trend is confirmed when the green Lips line is positioned below the red Teeth line and blue Jaw line.
- Initiate a sell trade and place a protective stop order above the previous swing high price.
- Exit the sell trade for a profit target of your preference, or wait for a bullish trend reversal signal.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the alligator.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- To access the indicator list, simply open the dropdown menu and select it
- Click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration