Forex Trading Expert Advisors (EA or automated trading system) and Custom Indicators (CI) for MetaTrader Platform.

Hi All,
Our customer Bill suggested us a new Signal indicator.

This is the simmilar to LOCSignal-MACross indicator but uses the jaws and teeth settings of Alligator indicator to calculate MAs



Below is a description of it.

I was wondering if you could adjust the code in the LOCSignal-MACross signal to signal a buy or sell when the red
Moving average crosses the blue moving average of the Alligator lines?

You could call LOCSignal - Alligator

The Alligator is on all MT4 programs and consists of the three moving averages shown below.

Jaws is blue, Teeth is Red and the Lips Green.




Feel free to post it for others to use and I will talk it up on the Bill Williams discussion threads on Forex Factory and suggest some strategy for it.

In the process I guarantee it will bring people to your forum. Lot of people use Bill Williams methods and as far as I know there is no Alligator signal
available.

This particular set of displaced moving averages works well with a fractal stop or a trailing
MA stop on the red or blue line. It is also designed to help count Elliott Waves and I find it is most useful.

Here is a chart showing the three Alligator moving averages and three points where it would signal - when the red line (teeth ) crosses
the blue line (Jaws.)

As you can see it has potential.


Much appreciated.
Bill.

Thank you Bill
please post your ideas how to filter the signals to make more accurete.
I'll try to make a new signal for it ;)

Thanks
Mikhail

How I use it:

You need to determine the larger trend - from H4 for example.
I found that using it on a M5 chart and setting it to trade
in one direction only, in synch with the H4 trend, works nicely.

I use fractal trailing stops and add 2 pips to them.

You can test it with the strategy tester and optimize your settings.
Try it long, then short, then both long and short. You will see
that if you can catch the trend of the market and get in synch with it,
the results are a lot better.

M5 has lots of trades and to me that is the point of an automated system.
You can pick trades yourself on a higher time frame as they do not come
along that often. Having LOCTrader gives you the freedom to not have to sit
on a terminal to catch the more frequent smaller time frame trades.

Let me know if you are able to get it working. PM me if you need to.

Trooper how would I post a set file here to help out?

The shifted moving averages of teh Alligator would account for that.

Have you rad any of Bill Williams material? The Alligator and fractals
are designed to work together in a proxy of Elliott Wave structure.

That is why you need to know the higher time frame trend. LOC will catch
the impulse waves in the lower time frame when you align your trade direction
with then higher time frame. It is a fascinating process when you get it right.
Again, I suggest back testing it on M5 as that helps with the learning curve.

No, I haven´t read or heard of Bill Williams....Sounds interesting and I will dig into it. Is there any special source you recommend (book,etc.) that deals with this subject of Alligator, EW and fractals? So far I never really concerned myself wit EW but it seems that with this Alligator indicator I should do so.
Anyway, it worked fine last night. The EA reversed position (form short to long) and gave me a nice profit.

Cheers Mario