Aroon Gator Oscillator Forex Trading Strategy

The Aroon Gator Oscillator forex strategy is a low risk buy/sell trading strategy that follows both trend bias and trend direction with the help of two simple to understand technical indicators.

It can be applied to any currency pair and for any timeframe.

The duo indicators of the Aroon-oscillator and the r_Gator are both used in confirmation trend bias and trend direction respectively.

Chart Setup

MetaTrader4 Indicators: Aroon-oscillator.ex4 (Default Setting), r_Gator.ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the blue line of the r_Gator custom indicator intersects the red and green lines in a bottom up fashion as depicted on Fig. 1.0, price is said to be taken to the upside i.e. a trigger to buy the designated currency pair.
  2. If the mostly green and dim gray line of the Aroon-oscillator indicator break and hover above the 0.00 level as shown on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the stipulated fx pair.

Stop Loss for Buy Entry: Place stop loss below the most recent swing low.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while a buy signal is running, the blue line of the r_Gator custom indicator cuts across the green and red line to stay above, it is a trigger to exit or take profit at once.
  2. If the line of the Aroon-oscillator custom indicator break below the 0.00 level during a buy alert, it is an indication to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the blue line of the r_Gator custom indicator cuts through the red and green lines in a top downward manner as illustrated on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the selected forex pair.
  2. If the mostly fire brick and dim gray line of the Aroon-oscillator indicator break and hover below the 0.00 level as seen on Fig. 1.1, price is said to be taken lower i.e. a trigger to sell the stipulated forex pair.

Stop Loss for Sell Entry: Place stop loss above the most recent swing high.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If while a sell alert is running, the blue line of the r_Gator custom indicator cuts across the green and red line to stay below, it is a trigger to exit or take profit immediately.
  2. If the line of the Aroon-oscillator custom indicator break above the 0.00 level during a sell alert (see Fig. 1.1), it is an indication to exit or take profit forthwith.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Aroon_Oscillator.ex4 custom indicator is a modified Aroon indicator and as such it is trend following.

It defines the strength of a trend in focus and its likelihood to last.

It oscillates between -100 and 100, offering market signals for all currency pairs and on all timeframes.

The r_Gator.ex4 is an indicator that takes after the Alligator MT4 indicator (since they show comparable values for the MA periods), but the r_gator only produces its signal earlier than the Alligator.

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