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The Fake Crosses Alligator Technical Trading Strategy

High accuracy forex Fake Crosses Alligator Technical Trading system and strategy –  The Alligator indicator is a great Forex trading tool that has been fascinating traders for a long time.

Trading NOTES


While not a moving average, riding trends is its main quality.

This article shows how to use Alligator indicator in Forex in a profitable trading way.

Trading The Alligator

This is one of Bill Williams famous indicators.

Together with Fractal, Gator or the Awesome oscillator, the Alligator Forex strategy is unique in every way. It is part of a special group of indicators.

Trading platforms, MetaTrader included, offer the Bill Williams indicators separate from classical trend indicators or oscillators.

The Alligator consists of the following:
  • Jaw: 13-period moving average displaced by 8 periods into the future (blue)
  • Teeth: 8-period moving average displaced by 5 periods into the future (red)
  • Lips: 5-period moving average displaced by 3 periods into the future (green)

The jaws line comes in blue, teeth in red and lips in lime, but this is just a setting.

You can change/edit the indicator in any way you like, as long you’re using it properly.

Take a look at the image below.

The classical way to use it is to look for “the perfect order”.

The three elements should NOT cross.

When doing that, the perfect order forms. Moreover, this signals a strong trend. We all know the “trend is your friend” saying.

The Fake Crosses Alligator Trading Strategy

One of the most popular Alligator Forex trading systems is the Fake Crosses Alligator.

That means, the crosses between the three lines that make the indicator.

They can’t be all correct, right…?

How about spotting the fake ones…?

A typical approach is to use the faster average (the green line) for spotting fake crosses. Therefore, eyes on the green and red lines, please!

When the green line crosses the red one and then turns again without reaching the blue line, a fake move just forms.

Hence, in a BULLISH trend, go long on such a cross. Or, in a BEARISH trend, go short when the perfect order gets back in place.

Trading doesn’t have to be complicated.

Keep things simple and logical and profits will come to you.

BUY Rules

  • Perfect BULLISH trend
  • The green line crosses the red one and then turns again without reaching the blue line
  • The blue line Trend indicator above 0
  • SMSStoch Histogram blue color
  • DS2 indicator blue color line
SELL Rules

  • Perfect BEARISH trend
  •  The green line crosses the red one and then turns again without reaching the blue line
  • The blue line Trend indicator below 0
  • SMSStoch Histogram red color
  • DS2 indicator red color line
Trading NOTES

Bill William’s Alligator Indicator provides a useful visual tool for trend recognition and trade entry timing, but it has limited usefulness during choppy and trendless periods.

Market players should confirm BUY or SELL signals with another trend identification indicator as a filter.

This trading system is a perfect solution for Alligator traders.


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