The most effective way to trade in IQ Option is to Identify the Trend > Find signals to buy options. With Alligator indicator, identifying the main trend of the market becomes much simpler. Your job now is simply waiting for the signal to open options. And this article, iqtradingpro will share how to use and trading in IQ Option with Alligator indicator.
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What is Alligator indicator?
Alligator is an indicator used to guide the market, which helps you predict the upcoming price movement. Alligator simulates the behavior of crocodiles to define the state of the market.
Alligator indicator consists of 3 SMMA moving averages.
Jaws (Red line) = SMMA (Average price, 13,8).
Teeth (Orange line) = SMMA (Average price, 8,5).
Lips (Yellow line) = SMMA (Average price, 5,3).
How does Alligator indicator work?
The market will move sideways in most of the trading time. This is when Jaws, Teeth and Lips close or cross each other. That means Alligator indicator is intertwined.
+ Signal 1: The three lines of Alligator are intertwined => The market goes sideways.
After waking up, the first thing that Alligator does is to open its mouth and yawn. Once sniffing the smell of food, it will begin the hunting trip. This is the right time to make transactions on the market.
+ Signal 2: Jaws open upward (3 Alligator lines moving up) => Uptrend market.
+ Signal 3: Jaws open downward (3 Alligator lines moving down) => Downtrend market.
With Alligator indicator, you should only focus on Signal 2 and 3. That means when the market has a clear trend, it’s now time to trade. Uptrend => Focus on HIGHER options. Conversely, Downtrend => Focus on LOWER options.
How to set up Alligator indicator in IQ Option
To create Alligator indicator. (1) Click on the indicator box => (2) Popular tab => (3) Select Alligator.
How to trade with Alligator indicator in IQ Option
So you can identify market trends with the Alligator indicator. The remaining job is to find entry points to create a safe IQ Option trading strategy.
Strategy 1: Alligator indicator combines with Support and resistance
Requirements: 5-minute Japanese candlestick chart + Alligator indicator. The expiration time is 15 minutes or more.
Trading technique:
HIGHER = Bullish Alligator indicator (3 lines moving up) + Support.
Explanation: When the price enters an uptrend, they will continually break through resistance levels to move up. These resistances will become reliable support zones. As soon as the price falls and touches the support level, you can open a HIGHER option.
LOWER = Bearish Alligator indicator (3 lines moving down) + resistance.
Strategy 2: Alligator indicator works with Pin Bar candlestick
Alligator is the indicator that identifies the main trend. And Pin Bar will be the signal to buy options.
Requirements: Japanese 5-minute candlestick pattern + Alligator indicator. The expiration time is more than 5 minutes.
Trading technique:
HIGHER =Bullish Alligator indicator + Bullish Pin Bar.
LOWER = Bearish Alligator indicator + Bearish Pin Bar.
Try to experience the effectiveness of Alligator indicator by opening a Demo account in IQ Option. Thank you for reading this article.
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