Hello friends and followers, after analyzing the statistical configuration of the Alligator indicator, and how its three moving lines are projected in short periods, I consider that at a graphic level the Alligator indicator can be of great technical utility for traders who are dedicated to Scalping.
The above argument is based on the following, considering that when executing scalping operations the entries and exits should be made in time frames preferably from 1 to 5 minutes, therefore, opening long positions in a short time using the Alligator indicator when the trend starts and closing when the trend ends would increase the effectiveness of scalping operations.
So, in effect, expert scalping traders can open a long position when the indicator signals a buy, as long as the green line (lips) rises above the other two lines, and then close the position when the green line begins to fall and the blue line is positioned at the upper end, leaving the red line in the middle and the green line at the lower end, so you can trade with this price action as many cycles are repeated with this pattern of the Alligator indicator.
To show a visual example of the effectiveness of using the Alligator indicator when executing scalping trades, observe how the price action of the ZIL/USDT pair projects an uptrend in a 5-minute time frame, so that any expert trader in Scalping mode will know how to take a long entry position in a short time by being guided by the visual structure offered by the moving lines of the Alligator indicator.
I hope that the content on the technical effectiveness of using the Alligator indicator in scalping style trading has been of benefit to you, in the next installment I will share content on whether it is necessary to add another indicator to make the indicator work better as a filter and help eliminate unnecessary and false signals.
SOURCES CONSULTED
ForexTraders The alligator strategy – how to use the Alligator in forex trading. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: TradingView
