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FRACTALS + ALLIGATOR TRADING STRATEGY - 100% WIN RATE ULTIMATE TRADING STRATEGY - YouTube

Channel: exTRADING

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Welcome to another video if you are new on exTRADING channel please consider subscribing to the channel

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hit the like button and also feel free to leave a comment down below in today's video we will talk

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about one of the most popular forex strategies called fractal trading strategy combined with

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the alligator after you are done watching this video you will learn step by step how to use

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this strategy it was designed by a famous market psychologist and successful trader bill williams

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in the 20th century however it remains topical nowadays fractals alligator belongs to trend

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strategies which means it does not work in the times of a flat this strategy is multi-currency

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however observations show that it works better on instruments with a small spread such as most

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basic currency pairs and metals with high volatile instruments it may give false signals you may use

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any time frame however on smaller ones signals will be multiple but their quality may worsen

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in one hour and longer time frames signals will demonstrate better quality but appear more rarely

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a trade will be working off for several days if not weeks the size of stop losses on large

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time frames may exceed the size allowed by your risk management however the profit may be huge

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compared to the stop loss do you know how to trade with the best fractal trading strategy

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this fractal trading strategy will answer all of your questions about fractals and alligator

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you'll learn how to use this strategy step by step to hit consistent winning trades

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today we will dive into a strategy that trades with the bill williams fractal

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indicator and bill williams alligator before we start trading using fractals profitably

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i want to give you some background information on bill williams himself

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this will help you understand the significance of these special indicators

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quick overview of bill williams mr williams developed a unique theory from combining the

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chaos theory with trading psychology along with the effects they have on the market movement

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bill williams vast knowledge of stocks commodity foreign exchange markets led him to develop many

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indicators including fractal trading patterns these include the accelerator decelerator

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oscillator alligator awesome oscillator fractals gator oscillator and market facilitation

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each indicator has a specific value they are great to trade with if you understand the basic

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concepts of each one his market view was in order for you to make money trading you must be able to

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understand that basic market structure you must be aware of the market's internal parts which

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he called dimensions these dimensions include the following fractal the phase space zones the phase

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energy and force combination momentum the phase energy deceleration acceleration the phase force

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balance line odd attractors i could go on for quite a while about bill williams

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but the important part to note about all of this is that his analysis and perspective of the market

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were different these powerful indicators are not outdated as some claim they work

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very well when you apply the right strategy his indicators come standard on most trading platforms

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these indicators will most likely be under his name bill williams or williams indicators

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as you can see those are all six of bill williams powerful indicators that come

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standard on your trading platform i do like each of these six indicators but after

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extensive research and testing putting together the alligator and fractal indicator not only was

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the easiest way to trade with his indicators but are extremely powerful with the right strategy

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now let's dive into the strategy this strategy is based on two indicators designed by bill williams

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and included in most trading terminals by default one fractals two alligator how does fractal

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indicator work well these are simply arrows that are on top or below the candles on the chart

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essentially these indicators can be used for various purposes including identifying support

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and resistance levels determining trade entry and exit points and determining market trend

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these fractals are formed when five repeated bars align in a distinct manner

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you need the fifth bar to close to discover the highest high or lowest low

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we will go more into detail about this indicator and show you how to use alligator indicator

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you can find the fractal indicator on mt4 mt5 or other popular trading platforms there is no

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need to have to run a fractal indicator download because it will already be there for you how does

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the alligator indicator work this indicator consists of three specific moving averages

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the 13 period line is called the alligator's jaw blue color the eight period line is called

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the alligator's teeth red color the five period line is called the alligator's lips green color

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we will go more into this indicator in a bit each of these lines has a specific name this

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is because we will reference them later on in the strategy the indicator is based on three

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essential aspects of the alligator's life sleep hunger and satisfaction if the beast is asleep

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or satisfied the moving averages will move close to one another suggesting lack of market activity

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if the beast wakes up the moving averages will start to move away from one another

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suggesting the start of a new trend this is the right time to initiate trades

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in a market trending upwards where the jaws are at the bottom while the teeth and lips are

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on top it indicates buying opportunities in a market trending downwards where the

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jaws are at the top while the teeth and lips are below it indicates selling opportunities

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if the alligator indicator is showing an uptrend for by positions to be valid fractals should

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appear on candlesticks above the alligator teeth also price action should be above the teeth for a

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minimum of five successive candlesticks if the alligator indicator is showing a downtrend for

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cell positions to be valid fractals should appear on candlesticks below the alligator

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teeth also price action should be below the teeth for a minimum of five successive candlesticks

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how to trade with fractal and alligator strategy step number one apply both fractals and bill

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williams alligator indicator on your chart the first step you are going to want to do

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is of course throw these important indicators on your charts as i have said they do come standard

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on every trading platform that i am aware of so this should be very simple for you to do

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once you do this your chart will look like this perfect step number two identify where the fractal

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has formed above or below alligator teeth note in this video we are using a by trade entry so

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all of these rules will be for a by entry okay so let's get into what the fractals are all about

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the fractals indicate a bottom or a top the basic fractal indicator is composed of a very

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minimum of five bars so when you see a fractal here is what may have happened for it to appear

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there were a series of at least five successive bars with the highest high in the middle and then

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the two lower highs are on both sides there was a reversing series of at least five successive

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bars when the lowest low is in the middle and the two higher lows were on both sides which

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forms a cell fractal fractals can appear with only one candle to the right of it but be aware

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that this is an unconfirmed fractal because the price action may pierce through the level

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the fractals have what's called a high and a low value this is indicated by the up or down arrows

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for example here are the unique alligator indicator lines on the chart

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now you need to be aware of where the fractals are being placed on the candles for this strategy

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concerning this special indicator here is the fractal that we want to take special note of

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i drew a circle on this specific up fractal this up fractal appeared on this candle above

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the red line or the alligator teeth this is criteria number two for the fractal strategy

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in a by trade the fractal must appear on a candle above the red line alligator teeth

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what is happening here is that the fractal forms a new height of the previous fractal and therefore

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made an up fractal appear on the candles in order to go to step number three for a bite

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trade the fractal must show an up fractal and be appearing above the alligator teeth

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step number three the price action must stay above the alligator teeth

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for at least five consecutive candles in by trade this is where all the magic happens

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more often than not when a fractal appears like the one above the price action is still flat

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this means there has not been a real breakout in the recent time frame the reason this strategy has

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to wait for at least five consecutive candles is that this is the time where either there is

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pullback that is forming a reversal may be forming or the price action is still consolidating in a

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flat market any one of those does not sound pleasant if you are looking for a big upward

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bullish move to form on the chart step number four price action need to break above fractal

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candle that was distinguished in step number two once you see that five consecutive candles did not

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make a drastic move to the downside and stay in between the high of the fractal candle and

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the alligator teeth then we go ahead and make an entry order you can make an entry this way or if

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you are sitting in front of your charts live with this occurs then you can make a market order also

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either one is okay to do because the same criteria is needed here is what it will look like as you

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can see i marked where our original fractal was discovered what happened after was that there were

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five or more candles that appeared that did not drift down to the alligator teeth the alligator

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lines did not cross and the price action finally broke above the fractal candle thus triggering a

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trade

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step number five take profit targets and stop loss

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you can try variations to this strategy as far as the take profit and stop loss is concerned

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exit the trade when two of the alligator lines cross over each other

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this most likely means the alligator is going back to sleep and the price action will either

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head the other way or consolidate place your stop loss below prior support resistance areas

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this will give you the best opportunity to salvage a trade if the price action would to turn on you

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and turn into a bearish trend it may bounce off these areas and head back in a bullish direction

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in this video we've seen the by entry criteria

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a cell entry criteria would be the exact same rules only the opposite

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sell trade steps step number one apply both fractals and bill williams alligator indicator

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on your chart step number two a down fractal must appear below alligator teeth and the price action

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must stay below the alligator teeth for at least five consecutive candles step number three price

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action need to break below fractal candle that was distinguished in step number two and then sell

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step number four exit the trade when two of the alligator lines cross over each other these basic

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fractal trading techniques should lead you in the right direction if you have been searching for a

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great strategy to use with these indicators there are many different strategies you can use with

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these indicators but in our experience we like this combination of the bill williams indicators

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many argue that every indicator is lagging and rarely show you profitable entries the fractal

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trading strategy uses the combination of price action analysis that complements these great

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indicators so if you are one of the skeptics give this strategy a try and let us know your results

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thanks for watching hope you guys have enjoyed the video and please

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don't forget to like and subscribe to the channel i'll see you in the next video

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