How to use the Alligator indicator on Quotex

Bill Williams' Alligator is an indicator that is used to identify trends and the possibility of entering the market after a correction. It consists of three shifted mouvings, which Williams called the "jaws", "teeth" and "lips" of the Alligator. When applied correctly, the Alligator will help you identify the beginning of a new trend, its main phase and possible completion. Let's understand how to properly install and use the Alligator indicator on the Quotex platform.

How Alligator works

After adding the indicator to your chart, you will see three lines:

• Jaws (slowest line, period 13, shift 8)
• Teeth (middle line, period 8, shift 5)
• Lips (fastest line, period 5, shift 3)

Installing the indicator

To add Alligator to Quotex, follow the steps below:

• Open the general list of indicators on the platform.
• Find Alligator in the list and select it.
• Configure the indicator parameters as you wish (periods, shifts, colors, line thickness).
• The indicator will be displayed on the chart, where you can customize it or remove it if necessary.

How to use Alligator in binary options trading

The Alligator is often used as a tool to determine the current state of the market:

• If the price chart is above the Alligator lines and they confirm an uptrend, consider buying Call options.
• If the price chart is below the lines and they confirm a downtrend, consider buying Put options.

Alligator + Fractals

• Look for a sharp price movement indicating a flat exit. The Alligator lines will begin to diverge.
• A fractal is formed (high or low on 5 candlesticks).
• A pullback follows after the fractal is formed. Do not trade until the fractal level is broken.
• If the fractal level is broken and the Alligator lines are lined up, buy the option, expecting the trend to continue.

Trade for continued movement

Use the area between the jaws and teeth as an area to end corrections. Use additional filters (candlestick patterns, Fibonacci levels, oscillators) to confirm correction completion.

Conclusion

The Alligator indicator can be a powerful tool in your arsenal of strategies for trading binary options on Quotex. It will help you determine market conditions and trend direction, which is key to successful trading. Remember to test any strategies on a demo account before applying them to the real market.