Off Gator Oscillator Forex Trading Strategy

The Off Gator Oscillator forex trading strategy uses the Gator oscillator to pinpoint entries and exits in an existing currency trend for any currency pair.

The strategy can be used for scalping, day trading and swing trading.

Learn the buy and sell trading rules:

Chart Setup

MetaTrader4 Indicators: ForexOFFTrend.ex4 (Inputs Variable Modified; CountBars=300000000, SSP=14, Kmin=0.8), Gator Oscillator.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

Enter a buy order if the following rules or conditions hold sway:

We begin by explaining the rules that oversee the Gator Oscillator –

Rule 1. Gator awakes – the bars on different sides of the signal line are colored differently.

Rule 2. Gator eats – green bars on both sides of the signal line.

Rule 3. Gator fills out – single red bar during the “eating” or “Rule 2.”

Rule 4. Gator sleeps – the bars on both sides are red.

  1. If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we should watch out for a bullish signal on the ForexOFFTrend custom indicator as a confirmation to go long.
  2. If the blue line of the ForexOFFTrend custom indicator intersects the red line in a bottom up manner as shown on Fig. 1.0, it is a confirmation of a bullish signal, as such a buy will suffice.

Stop Loss for Buy Entry: Place stop loss below medium term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If the Gator sleeps (labelled as ‘Rule 4’ on Fig. 1.0), it is an indication that the market is entering a non-trending state and as such an exit or take profit is looming.
  2. If while traders are locked to their buy orders, the blue line of the ForexOFFTrend custom indicator intersects the red as depicted on Fig. 1.0, an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we should look out for signs of a sell alert on the ForexOFFTrend custom indicator as a confirmation to go short.
  2. If the blue line of the ForexOFFTrend custom indicator intersects the red line in a top downward fashion (see Fig. 1.1), it is a confirmation of a bearish signal, and as such a sell will do.

Stop Loss for Sell Entry: Place stop loss above medium term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the Gator sleeps (labelled as ‘Rule 4’ on Fig. 1.1), it is a signal that the market is entering a non-trending state and as such an exit or take profit should be rightly considered.
  2. If while traders are hooked up to their sell orders, the blue line of the ForexOFFTrend custom indicator intersects the red as illustrated on Fig. 1.1, an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The Gator Oscillator is a technical trading tool by Bill Williams and shares a lot of similarity to the Alligator oscillator. The indicator is basically use to spot strong directional action.

The ForexOFFTrend.ex4 custom indicator is a trend indicator that is built on two moving average lines, where its crosses are seen as a nod to go bullish or bearish as the case may be.