Major Gator Forex Trading Strategy

The Major Gator forex trading strategy is a well-built trend following system that uses indicators whose signals will tell you where to place your entries and exits.

The setup from these indicators (ForexMajorTrend and r_Gator) are quite profitable, owing to their ability to spot trend and price reversal respectively.

Chart Setup

MetaTrader4 Indicators: r_Gator.ex4 (Colors Width Modified; #0=2, #1=2, #2=2), ForexMajorTrend.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

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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 MT4 indicator cuts across the red and green lines in a bottom up fashion as shown on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated currency pair.
  2. If the blue vertical bars of the ForexMajorTrend custom indicator is seen within the indicator window (see Fig. 1.0), the overall market sentiment is said to be bullish, and as such a buy alert is recommended.

Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price closes below the blue line of the r_gator as depicted on Fig. 1.0, it is an indication of a possible bearish reversal, as such an exit or take profit will do.
  2. If a red vertical bar is seen within the ForexMajorTrend custom indicator window, it is a signal of weaning bulls power, as such an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the blue line of the r_Gator custom MT4 indicator cuts across the red and green lines in a top downward manner as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the specified forex pair.
  2. If the red vertical bars of the ForexMajorTrend custom indicator is seen within the indicator window (see Fig. 1.1), the overall market sentiment is said to be bearish, hence a trigger to sell the forex pair of interest.

Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

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

  1. If price closes above the blue line of the r_gator as seen on Fig. 1.1, it is an indication of weaning bears power, as such an exit or take profit will suffice.
  2. If a blue vertical bar is seen within the ForexMajorTrend custom indicator window while a sell alert is running, it typifies halting bears power, as such an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

R_Gator 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.

The ForexMajorTrend indicator displays red and blue vertical bars to explain a sell and buy signals in the market.