The Alligator Indicator For Trading In Binomo
Identifying trends and finding entry signals is a simple and effective way to trade in Binomo.
Today, we'll show you how to use the Alligator indicator to trade effectively.
What Is Alligator Indicator?
The main basis of this strategy is the Alligator indicator. This is an indicator used to determine the trend of future prices, shaped like an alligator jaw.
The Structure Of Alligator Indicator
The indicator consists of 3 smooth moving averages (SMMA) that represent 3 parts of an alligator jaw as follows:
• The Alligator’s Jaw, the “Blue” line, is a 13-period Smoothed Moving Average, moved into the future by 8 bars.
• The Alligator’s Teeth, the “Red” line, is an 8-period Smoothed Moving Average, moved by 5 bars into the future.
• The Alligator’s Lips, the “Green” line, is a 5-period Smoothed Moving Average, moved by 3 bars into the future.
How Does The Alligator Work?
Depending on the stage of the market, the Alligator has different reactions.
(1) When the market moves sideways, the Alligator tends to intertwine. Alligator jaw, teeth and lips tend to close.
(2) When the market goes uptrend, the alligator jaw opens upwards. The Alligator lines are upwards.
(3) When the market goes downtrend, the alligator jaw opens downwards. The Alligator lines are downwards.
When trading, all you need to do is to observe the signals (2) and (3) of the Alligator. It means that when the market is in a certain trend, such as uptrend => only open UP orders. Downtrend => open DOWN orders.
How To Set Up Alligator Indicator In Binomo
(1) Choose the Indicators menu.
(2) Select the Alligator indicator.
A setting window appears.
(3) Parameters for the alligator jaw (blue SMMA line).
(4) Parameters for the alligator lips (red SMMA line).
(5) Parameters for the alligator teeth (green SMMA line).
You can customize these parameters, however, we recommend to follow the default setting of the trading platform.
This is a very useful indicator. Try it on your demo account NOW!