Combining the Alligator indicator, DeMarker indicator, and Momentum indicator creates a powerful trifecta for traders aiming to identify trends, time entries with precision, and gauge market strength.
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The Alligator, developed by Bill Williams, consists of three smoothed moving averages (jaw, teeth, lips) that help visualize market phases: sleep (consolidation), awakening (breakout), and feeding (trend continuation).
When the three lines diverge and move in the same direction, it signals the start of a trend, making it a great tool for recognizing when the market is transitioning from sideways to trending.
The DeMarker indicator adds another layer of insight by measuring the demand behind price moves. It works on a scale from 0 to 1, identifying overbought conditions when above 0.7 and oversold levels below 0.3. When used in conjunction with the Alligator, the DeMarker helps filter out false signals. For instance, if the Alligator is waking up (lines crossing and spreading) but the DeMarker is already deep in overbought territory, it might be a warning to wait for a pullback before jumping in.
Lastly, the Momentum indicator confirms the strength behind price movements. By comparing current prices to those from a previous period, it highlights whether buying or selling pressure is accelerating. When momentum rises alongside a “feeding” Alligator and the DeMarker confirms there’s still room before hitting overbought or oversold zones, traders get a green light for entry. This trio ensures that traders are not only riding strong trends but doing so at optimal moments, backed by volume and velocity.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Open Account: http://pocketoptioncapital.com
The Alligator, developed by Bill Williams, consists of three smoothed moving averages (jaw, teeth, lips) that help visualize market phases: sleep (consolidation), awakening (breakout), and feeding (trend continuation).
When the three lines diverge and move in the same direction, it signals the start of a trend, making it a great tool for recognizing when the market is transitioning from sideways to trending.
The DeMarker indicator adds another layer of insight by measuring the demand behind price moves. It works on a scale from 0 to 1, identifying overbought conditions when above 0.7 and oversold levels below 0.3. When used in conjunction with the Alligator, the DeMarker helps filter out false signals. For instance, if the Alligator is waking up (lines crossing and spreading) but the DeMarker is already deep in overbought territory, it might be a warning to wait for a pullback before jumping in.
Lastly, the Momentum indicator confirms the strength behind price movements. By comparing current prices to those from a previous period, it highlights whether buying or selling pressure is accelerating. When momentum rises alongside a “feeding” Alligator and the DeMarker confirms there’s still room before hitting overbought or oversold zones, traders get a green light for entry. This trio ensures that traders are not only riding strong trends but doing so at optimal moments, backed by volume and velocity.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
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LearningTranscript
00:00hey trader in today's video i'm going to show you exactly how i made over forty thousand dollars in
00:07profit using this powerful strategy on pocket options this is the same strategy that has been
00:12helping me consistently win trades and today i'll break it all down step by step so you can do the
00:17same but here's the thing it's not just about knowing when to enter a trade it's also about
00:22knowing when not to trade and i'm going to show you both i'll walk you through the perfect entry
00:27point the key confirmation and rick's management techniques so to ensure you stay on the winning
00:32side if you're tired of losing and want a strategy that actually works then make sure you watch this
00:37video till the end because missing even one step could cost you a big so before we dive in do me a
00:43favor smash that like button subscribe to the channel and turn on the notification bell so you
00:47never miss an update and if you find this video valuable share it with a fellow trader now let's
00:52get into it i have one minute strategy to share with you and it was one of the powerful strategy
00:57so far so over here we're making use of three indicator the first indicator i use is alligator
01:03the second indicator is momentum while my last indicator is d marker my arm jaw period is 15
01:09the jaw shift is 7 the teeth period is 10 the teeth shift is 6 the lips period is 5 while the lips
01:16shift is 4 all right on the styles over here i make sure that i change the color and i take all the
01:21line to be on two pixel each so that's pretty much it when you're done you hit save all right so my
01:27momentum indicator come with a period of 12 on the styles over here you don't need to do anything
01:31just hit save all right the last indicator which is d marker come with a period of thing um the
01:36styles over here i make sure i take all the line to be on three pixel that's pretty much all i do so
01:41when you're done you hit save so this strategy is a one minute strategy and i'm using it on 15
01:47second kind of time frame i'm also making use of haneke ashie candlestick so that was pretty much
01:52the setup of this strategy all right so guys let's find a good moment okay guys over here i'm finding
01:58a moment i'm for a down trade so let me enter this trade real quick all right um this strategy is a
02:05very simple one i'm going to explain in details after the end of this trade but trust me guys one
02:12of the very simple strategy that you're going to like so guys let's wait and save this is going to be a
02:15good one okay we have less than a minute a second sorry a good one and the money on that so how this
02:25strategy works guys i want to explain this um real quick so that you can pretty much understand how
02:30the strategy work the number one thing you always need to look out anytime you are going for a
02:34downtrend is to always make sure that you have all the three alligator line intersect each order the
02:39white the green and the blue the three must come together and they must intersect and not only that
02:44you also need to have them all the three line giving you a confirmation of a downtrend another
02:49most important thing is the candlestick that is actually coming on the trend all right so make
02:53sure that most of the candlestick coming down in the trend are very stable just like what happened
02:57here we're having a very stable candlestick coming in the trend is very important all right so we also
03:02need to confirm a strong momentum all right i actually placed my trade in this particular position
03:07so make sure that the momentum has already reversed giving you a confirmation of a downtrend before you
03:13place a trade so the last thing is with your d marker i make sure you're having a very strong
03:18overboard condition and the line is giving you a strong confirmation of a downtrend before you enter
03:25a trade but the most important thing is with your alligator make sure that all the three line intersect
03:29each order and see that the three line is giving you a strong confirmation of a downtrend before you
03:34place a trade i hope you understand okay guys over here i'm finding another good moment you can see
03:40a direction of the trend right there right let me enter this trade real quick i'm putting two
03:46trade on that you can see our three line of the alligator intersect each order and you can see that
03:50the three lines are also confirming a strong downtrend there's something applicable where the candlestick
03:55under them and also with our momentum we have a very clear picture of a downtrend here with our momentum
04:01there's something applicable with our d market is actually another perfect moment so that's the reason why
04:07i place the trade before you enter our trade or let's make sure that the candlestick you're placing
04:11the trade on is very strong i'm talking about a full body candlestick giving you a confirmation of a
04:16downtrend before you place your trade i hope you understand so guys let's wait and see if this is going
04:22to be a good one a good one here so guys if you're new to the channel this is trading pipes kindly hit the
04:32subscribe button if you haven't done so and turn on the notification bell on the platform i'm making
04:37use of is called pocket option the link is right there in the description so if you haven't signed up
04:41make sure use the link today to sign up i'm they're one of the best brokers so far if you want to trade
04:46binary options and they also give you over fifty thousand dollars on demo account for you to practice
04:51with and when you are good you can actually go live and i also have a promo code right there in
04:56description that will give you 50 bonus on all your deficit right so let's keep trading okay guys over
05:03here i'm finding a moment for an up trade i'm actually waiting for the next candlestick i want
05:11this to be uh i want to have a clear picture all right you can see that the three line of our alligator
05:16just intersect we have a perfect condition of a trend there with the candlestick the same thing
05:21applicable with the momentum and of course with our day marker i'm going to enter this trade real quick
05:25is actually one of the best entering all right so guys always make sure that you're having a perfect
05:31condition with your candlestick is very important that the candlestick you're placing your trade on
05:35the trend must be very strong a full body candlestick at least three to four candlestick giving you a
05:40confirmation of an uptrend before you place a trade the most important thing is with your alligator the
05:47three line must intersect each order and the three line must be giving you a confirmation of an uptrend
05:52there's something applicable with our momentum all right all right so make sure you're having
05:57a strong momentum as well there's something applicable with your d marker it must come from
06:01a very strong oversight condition giving you a confirmation of an uptrend before you play the trade
06:08all right five seconds left
06:11all right guys over here i'm fine in a moment okay this is actually a perfect moment for a down trade
06:26i'm gonna pull two trade on that um real quick as you can see right here it is actually a perfect
06:32condition um our three a line of the alligator intercept each order and the reason why i place
06:36this trade is the fact that i see a stable trend over there and then when i check i see a momentum
06:42giving me a confirmation of a strong downtrend that's something applicable with my d marker
06:47but over here we have a sharp reversal with this candlestick that i place the trade on but as you can
06:53see the candlestick reverse back to its moment so guys let's wait and see if this is going to be a good
07:00one all right so another thing i would love to make mention is that always make sure that you're placing
07:06your trade in a very strong arm trained and for example if you're going for a down trade make
07:10sure you're placing your trade um in a very strong arm resistant level a good one there guys in the
07:18morning on that so as i was saying anytime you're going for a down trade always make sure that you're
07:23placing your trade in a very strong resistant level the same thing applicable anytime you're going for
07:27buy trade make sure you're placing your trade in a very strong support level all right and we're taking
07:32an advantage of a reverse trend um for example if you're going for a buy trade we need to have a
07:36very strong i'm down trend then we take the advantage of a reverse position the same thing
07:41applicable if you are going for a sell trade we need to have a very strong uptrend then we take
07:45an advantage of the reverse position coming downward i hope you understand so guys this
07:50is where i'm going to stop on today's video if you like the video please give me a thumbs up
07:53subscribe to the channel and then turn on the notification bell so that you don't miss out
07:57on my next um video i love you guys and i'll see you on the next one