as a single on chart tool. In addition, the tema can be combined with an extra moving average in order to validate signals. What we did not show in the above example are the commission savings you would have racked up by using the Alligator indicator. The Alligator is used to confirm ongoing trends and their primary direction. The purpose of the tema is to hop into emerging trends and reducing the lag of trading signals. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable.
While not a moving average, riding trends is its main is article shows how to use the.
Alligator indicator in Forex in a profitable trading way.
The, alligator indicator can also help traders designate impulse and corrective wave formations, but the tool works best when combined with a momentum indicator.
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This makes the tema riskier than the Alligator, since it increases the amount of false signals. It is a 5-period smoothed moving average, displaced 3 periods to the right. The alligator goes to sleep once it is satiated. Then I noticed another cross between the green and the red Alligator indicator lines. At the same time, I was constantly relying on price action rules. Thus, the tema setup should be carefully chosen according to market volatility, the chart range, and the traders style. When the bands are tight and constantly interrupt each other, we say that the Forex Alligator is sleeping.