Alligator Universal Binary Options Strategy

The Alligator Universal binary options trading strategy helps identify extended trend movements after the market exits a corrective pullback. The system is based on two indicators: Alligator and Fractals. The Alligator tool consists of three moving averages that show when a trend begins and ends, as well as periods of sideways movement. Fractal is an arrow indicator marking local price lows and highs. Combining these tools helps traders find favorable trade entry points.

Minimum Time Frame and Expiration Time

• Time frame: S5 (5 seconds)
• Expiration time: 1–2 minutes

Alligator Universal Strategy Indicators

The Alligator trading indicator uses the following settings:

• Jaws – blue line. Period 13 with a shift of 1;
• Teeth – red line. Period 8 with a shift of 1;
• Lips – green line. Period 5 with a shift of 1.

Next, add the Fractal indicator with a period of 2. It displays green upward arrows and red downward arrows.

Risk Management

Use a fixed trade amount that does not exceed 5% of your trading balance. Avoid trading during major economic news releases.

Alligator Universal Strategy: Bullish Signal (Open an Up Trade)

1. The Alligator lines cross, converge into a tight bundle, and point upward.
2. The price moved upward but pulled back down to the middle line. This indicates a correction and suggests that the price may soon resume its upward movement.
3. The price turns upward, and a fractal appears below the candle.
4. Enter the trade when a bullish candle rebounds from the middle line.

Alligator Universal Strategy: Bearish Signal (Open a Down Trade)

1. The Alligator lines cross, converge into a tight bundle, and point downward.
2. The price moved downward but pulled back up to the middle line. This indicates a correction and suggests that the price may soon resume its downward movement.
3. The price turns downward, and a fractal appears above the candle.
4. Enter the trade when a bearish candle rebounds from the middle line.