Recommended timeframes M15
This strategy is applicable to any currency pairs and based on a simple trend following principle "buy/sell". To define entry and exit points, the standard Alligator indicator and 144-period Simple Moving Average (SMA) are used. The chart time-frame is to be set at M15, but longer periods are admissible too.
The following rules should be respected when defining entry and exit points.
BUY trades shall be opened under the following conditions:
- the price is located above the SMA (144) (indication of a bullish trend)
- the green line of the Alligator indicator has crossed the red and blue lines from below.
- the red line of the Alligator indicator has crossed the blue line from below.
Stop Loss is to be placed 1 point lower than SMA 144 (all the time).
Long positions are to be closed once the green line of the Alligator indicator has crossed the red line from above (indication of the trend reversal).
Pic. 1 In the picture we can see a chart on the M15 time-frame with the indication of entry and exit points for a long position.
SELL trades shall be opened under the following conditions:
- the price is located below the SMA (144) (indication of a bearish trend)
- the green line of the Alligator indicator has crossed the red and blue lines from above.
- the red line of the Alligator indicator has crossed the blue line from above.
Stop Loss is to be placed 1 point higher than SMA 144 (all the time).
Short positions are to be closed once the green line of the Alligator indicator has crossed the red line from below (indication of the trend reversal).
Pic. 2 In the picture we can see a chart on the M15 time-frame with the indication of entry and exit points for a short position.