Alligator and Candlesticks Forex Techniques – forex trading patterns

Generally in Forex trading a great amount of indicators are used and Alligator indicator is also one of them. This indicator is basically formed by combining 3 moving averages. These three indicators are represented by 3 different colored lines i.e. the blue line, the red line and the green line. Blue line shows 13 periods and can move up to 8 bars. Red line shows b periods and can move up to 5 bars and the green one show 5 periods and can move up to 3 bars.
If you are a Metatrader user then you will find that Alligator indicator in custom indicator inside the navigator window. When all these three lines get too close then it means that the market is showing very volatile trend and there are very low chances for further trade. When these 3 lines get wider this indicates that the market has got trendy. You have to observe what type of trend is it. If the lines are going up this will indicate that the market is showing positive trend and if the lines are moving down then it means that the market is showing negative trends. Positive trends show buy market situations while negative trends show sell market conditions.
There are many candle stick patterns. We have discussed few of them in our topic. These trends are mentioned below.
• Engulfing pattern,
• Bullish pattern,
• Bearish pattern and
• Doji pattern

These four patterns are very rapidly used in forex trading.