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The Alligator Indicator, developed by Bill Williams, is a powerful tool that helps traders identify the presence and direction of a trend by using three smoothed moving averages—commonly referred to as the jaw (blue line), teeth (red line), and lips (green line).

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These lines represent longer-term, medium-term, and short-term moving averages respectively. When the three lines are intertwined or close together, the alligator is said to be "sleeping," indicating a ranging or sideways market. However, when the lines begin to separate and fan out, it signals that the alligator is "awakening" and a strong trend may be developing.

Trading with the Alligator Indicator revolves around timing entries and exits based on these phases. A common strategy involves entering a long position when the lips cross above the teeth and jaw, indicating the beginning of a bullish trend. Conversely, a short position may be initiated when the lips cross below the other lines, signaling potential bearish momentum. Traders often wait for a clear separation between the lines to avoid false signals during the “sleeping” phase and use trailing stop-losses to protect profits as the trend matures.

For enhanced reliability, many traders combine the Alligator with other technical tools such as the Awesome Oscillator, RSI, or volume indicators. This multi-indicator approach can help confirm trend strength and filter out whipsaws. Additionally, observing price action around key support and resistance levels while the Alligator is active provides a more strategic layer to trading decisions. Ultimately, the Alligator Indicator is most effective when applied in trending markets, offering traders a visual framework for capitalizing on sustained momentum and avoiding the chop of consolidation.

Money Management:
It is important to follow up with this strict rule of investment:
If you have $100 in your account, each open position should be $5 tops
If you have $200 in your account, each open position should be $10 tops
If you have $500 in your account, each open position should be $25 tops
If you have $1,000 in your account, each open position should be $50 tops
If you have $2,000 in your account, each open position should be $100 tops
If you have $5,000 in your account, each open position should be $250 tops

We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.

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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Transcript
00:00I have earned $6,779 in two days by investing just $100, and that too by using just one strategy.
00:19So the strategy is very simple, even new traders can use it. So today we will learn about this trick in detail, but first of all I would like to tell you that you should not try to complete it in one day. It may take you more time than me, like someone can complete it in four days. Someone may take a week, so it can also depend on your trading skills.
00:40So I currently have $1,200 on my account. So I will use only $100 from that, and we will make it a huge amount.
00:52So let us first add currency pairs, here we will add those currency pairs which can give us a return of up to 92%.
01:00After that add the alligator indicator from the indicator's settings. I have already added it here. Now we will change its settings, so in jaws period set 8. And in jaws shift and teeth period set 6. Then in both teeth shift and lips period set 5.
01:19And lastly set 3 and lips shift. And I have also changed the color settings here. So that you can see the interface properly. So here our indicator settings are complete.
01:31Now let us look at the timing settings. So today we will set the timing of the candle to 2 minutes. And after that the timing of the trade has to be set to 6 minutes.
01:41And here all our settings have been set. Now we will try to achieve our target. So first of all we are going to start with $100. So we will place the first trade of $100 only. For this we will look for the good chart.
01:56So here I have got a good chart. So I have placed a trade of $100 here. Now why did I place an upward trade here? Because for some time the green line was trying to cross these two lines in the upward direction. But this time the green line has crossed successfully. So I have placed the trade in the upward direction.
02:20If you do not have time to learn trading. Or if you are learning trading. Even then free signals are very useful for you. Because free signals are exhausted in just 1 to 1 and a half hours. Then you are free. And if you earn some income through free signals. Then your confidence will also increase. So this can be a good platform for new traders as well.
02:41So our first trade has won. And our amount has become $192. So we set the amount here as $192.
02:57So here the green line has crossed both the white lines in downward direction. So I have placed $192 in downward direction.
03:05Until you win the trade I would like to tell you something about the alligator indicator. Before placing a trade in alligator indicator. You have to pay attention to some things. We will discuss them while placing a trade in this video. So the first thing is not to place a trade until the cross is formed properly. Please pay attention to this when I place a trade.
03:28So now our amount is $268. So now our amount is $268. Now we will place a trade of $268.
03:38So here is a cross in the upward direction. So I place $268 here.
03:44Another thing to keep in mind before placing a trade in alligator indicator is that there should be a distance of at least 7 to 10 candles between the previous cross and this cross.
03:56If the crosses are forming very close. Then avoid that chart and look for another entry.
04:01Because if another cross is forming near the previous cross. It means that the market may have gone sideways for some time.
04:08Now our amount has become $504. Now from here we have to place the entry more thoughtfully. We will place the trade only after getting a good confirmation.
04:19So yesterday we made $504. But then I did not find a good entry for a long time so I closed the trading session. Today we will start from $504. So first of all we look for an entry.
04:37So here a cross has formed in the downward direction. So I have plans to trade a $504 here in the downward direction.
04:51To become a successful trader in trading, you have to pay attention to every single thing. Like before placing every trade, you should have a daily management plan.
05:01Like you should know how much risk we have to take today, and when to close the trading session. What is the minimum trade amount to be placed today? And what is the maximum trade amount to be placed after incurring a loss?
05:14So now our balance is $967. Now we look for the next simple trade, where it is easy for us to place an entry.
05:23So here a cross has formed in the upward direction, so we will place a trade of $968 here.
05:33You see videos of many traders that they start with $1, and earn a lot of dollars according to their wish. But for this they must have practiced it first.
05:42You can also practice it in demo account, and then use $1 from real account, and see how far you can go. And then keep practicing, you can get its result quickly.
05:53And now our balance is $1,839, now we have to place trades more cautiously, if even one of our trades loses. We will have to start from the beginning.
06:07So here the green line has crossed both the white lines in a very nice downward direction, so we will place a trade of $1,839 on this chart.
06:37Here the market was moving a little differently, but our entry won, and now our balance is $3,531. Now we just have to place only one trade, if we win this trade, then our two days target will be completed. So now we look for a chart with good movement.
07:04So here a cross has formed in the upward direction, and also there is a good support zone here.
07:31From here the market is moving up taking support, so there are chances of our entry winning, so now I place a trade of $3,531 here.
08:01And here the last trade has won, it took a lot of time to find this trade, and it was a very good chart, it was also very easy to analyze, and now our balance is $6,779. Now we are closing the trading session.
08:24We'll see you next time.
08:30We'll see you next time.
08:32We'll see you next time.

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