MTF Alligator T3 MT4 Indicator is a highly reliable indicator
The MTF Alligator T3 MT4 indicator is a custom made indicator based on the Alligator Indicator developed by a well-known trader Bill Williams. The traditional Alligator indicator is composed of three main components the Jaw, the Teeth and the Lips which are displayed in the form of some simple moving averages and it can be used to determine whether we are in a bullish or bearish trend. However, the MTF Alligator T3 MT4 indicator is an improved version of the Alligator indicator and is an aggregator of 6 moving averages constructed with certain parameters that will help you determine and control the direction and the trend force.
Bill Williams was describing this indicator and its components very figuratively. By the author descriptions the indicator symbolizes an alligator, which eats up the price and the 3 moving averages has the same figurative titles:
- Alligator’s Jaw is a slow smoothed moving average constructed by the median price, not the closing one;
- Alligator’s Teeth is the middle smoothed moving average, expanded by 5 bars in the future;
- Alligator’s Lips is the fastest moving average, expanded by 3 bars in the future;
Whenever all of the green moving averages crosses over the all of the purple moving averages you want to trade going in that direction because that is signaling an indication that the momentum has shifted. Momentum is a very important thing when you determine the strength of the trend. When the distance between the three moving averages is great it means the momentum is great.
You can either use the MTF Alligator T3 MT4 indicator as a standalone system or you can adapt to the market conditions and use your current strategy in conjunction with the Alligator indicator and start putting more weight on the MTF Alligator T3 MT4 indicator.
The preferred settings for the MTF Alligator T3 MT4 indicator are the default settings. Unlike the traditional Alligator indicator beside the 3 main moving averages the MTF Alligator T3 MT4 indicator has 3 more bands which are nothing more than 3 simple moving averages:
- JawsPeriod = 13 with a shift value of 2;
- TeethPeriod = 8 with a shift value of 1;
- LipsPeriod = 5 with a shift value of 0;
- Band1Period = 26 with a shift period of 3;
- Band2Period = 34 with a shift period of 4;
- Band3Period = 48 with a shift period of 5;
MTF Alligator T3 MT4 Indicator Strategy and Trading Rules
The MTF Alligator T3 MT4 indicator can be an outstanding buy/sell signal generator using it as a standalone strategy. This is a trend reversal strategy as well as a trend-following strategy because it predicts the shift in the current trend as well as it will determine the strength of the current trend. When we’re in consolidation and there is no clear trend the Alligator’s moving averages will be interlaced between each other. This is a direct and straightforward strategy that eliminates any subjectivism. Without further ado, these are the buy/sell trading rules of the MTF Alligator T3 MT4 strategy:
- Buy Signal: Buy after all of the green moving averages crosses above all of the purple moving averages, using a protective stop loss below the most recent swing low. Take profit once the Alligator’s Jaw crosses below Alligator’s Teeth.
- Sell Signal: Sell after all of the green moving averages crosses below all of the purple moving averages, using a protective stop loss above the most recent swing high. Take profit once the Alligator’s Jaw crosses above Alligator’s Teeth.
In Figure 3 we have the GBP/USD 1H chart and both a short and a long trading opportunity are highlighted. The preferred time frame for the MTF Alligator T3 MT4 strategy is the 1h chart, however, the same rules can be applied to any different time frames. If the momentum behind the trend is strong enough you can enter a trade as soon as the Jaw moving averages crosses above the bands, however, if you want to be more conservative you have to wait for all of the Alligator’s MA crossover.
Recommended Time Frames for the MTF Alligator T3 MT4 Indicator
Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
MTF Alligator T3 MT4 Indicator Download
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