By trend or against? Disputes on this topic continue to this day, because there is no answer to this question. It seems logical to buy in a growing market, sell in a falling one. But not so simple. In this simple profitable Forex strategy, we again pay attention to trading against the trend, using an interesting indicator called AntiAlligator. It represents the exact opposite of the popular Alligator, which we have already told you before. To get a free template for this indicator, leave a comment with an email address after the article.
Simple Forex Profitable Strategy
Trading against the trend does not mean that you need to sell an asset that is increasing in price and buy cheaper. Rather, the logic here is somewhat different: if everyone says that the price will go up, it means that everyone is ready for this and have already bought an asset with the hope of selling it at the peak. This means that the volume of purchases will decrease and a reversal will soon occur. In other words, if the price rushed up, you do not need to jump into the last car, but it makes sense to wait and enter the market against the trend at the moment of slowing down.
AntiAlligator is based on Bill Williams’ famous indicator Alligator, but it gives completely opposite signals. He draws entry points at the moments of a trend correction or a potential price reversal. Signals appear when the candle breaks out, and the price at this moment is far from the indicator’s “lips”. Forte AntiAlligator in the absence of delay. A simple profitable Forex strategy for this indicator allows you to earn even on minor corrections in a clearly directed trend.
- timeframe – M15 (M5 can also be set);
- asset – EUR / USD.
A long position is opened when the indicator displays two green columns in a row above the mark of 0.002. On the next candle you can open a position. The length of the safety order is 5-15 points. The target profit level is 10 points, upon reaching which 50% of the transaction is closed, 50% is insured by trailing.
For a short position, the condition is the same, only the columns must be red. AntiAlligator allows you to use the correction and the future reversal mainly for short-term periods, so you should not rely on large profits. But the signals appear often. AntiAlligator is a simple profitable Forex strategy, which is quite suitable for novice traders who master technical analysis. For skeptics who do not want to risk working against the trend, we recommend using the classic Alligator with a confirmatory oscillator. Put the Alligator and the Anti-Alligator near and compare the trading performance.