Techniques to Profit More with Alligator Clash

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This is the Tool Development Team of Cross Retailing Co., Ltd.

Thank you very much for using the Tool Development Team's tools on a daily basis.

We would like to share about the trend-harvesting trading technique of

“Alligator Clash.”

We would like to explain it to you!

Alligator Clash

As the name suggests, it uses the “Alligator” indicator.

To briefly explain the “Alligator,”

three moving averages are viewed as the mouth, teeth, and jaw,

and when the mouth, teeth, and jaw are open, it indicates a trend; when they cross, it indicates no trend.

To take profits from the trend,

it is a perfect indicator, in my opinion!

※This is just my personal opinion※

In this signal tool, in addition to “Alligator,” we also use

“MA” and “ADX” to further determine the trend.

Even if you enter and exit exactly according to the signals,

you can still aim for substantial profits,

but this time we will add a bit of discretionary judgment to this signal tool,

and share techniques for selecting entries.

As I mentioned earlier,

the strength of the Alligator is that you can distinguish whether a trend is present.

For example, the red circled area like this

shows that the Alligator is opening, so it indicates an uptrend, right?

However, there is a weakness even in this trend-focused Alligator.

That is in markets like this.

In so-called ranging markets, it opens a little, closes, and repeats,

and there are cases where you get fooled by entering at the initial movement of the trend.

In periods where it repeatedly opens and closes in short intervals,

signals occur frequently, and losses become more likely.

So in this opening-closing market,

I will share techniques to avoid entries as much as possible.

The techniques I will share this time use

not only the Alligator Clash but also an indicator called ZigZag.

When reflected on the chart, it looks like this ↓

The Alligator keeps opening and closing, and

you can see a string of losses continuing.

The orange zigzag is the ZigZag we mentioned earlier.

The parameters are set from the top as “5,5,3.”

Now, using ZigZag, we will select or reject entries.

The judgment is quite simple.

That judgment is

“When a signal appears, does the candlestick exceed the most recent high (low)?”

Yes.

I zoomed in this part a bit below ↓

Even in this portion, there are 5 signals,

and among them, signals that occurred before surpassing the recent high (low) are marked with a blue circle,

and signals that occurred after surpassing the recent high (low) are marked with a yellow circle.

(The buy signal in the middle is a little questionable in terms of overshooting the recent high, but...

I think in real time it’s probably in the process of forming a ZigZag high, so I marked it with a yellow circle.)

As you can see,

simply adding the filter of the recent high/low to the entry decision

allows you to avoid 3 losses out of 5 trades.

The “Alligator Clash” can be used on various timeframes,

but the shorter the timeframe,

the more the Alligator lines tend to open and close repeatedly.

So, by adding the small techniques I shared this time,

I hope you will try it out ლ(´ڡ`ლ)

…In this way, it’s not just entering according to signals,

please try various analyses such as applying filters.

This will lead to more effective trading methods

and could be a catalyst for developing your own logic.

If you still have not obtained “Alligator Clash,”click hereclick here

Tool Development Team