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I recently discovered that Williams' Alligator indicator can be used to identify current stock trend. But there's something that make me curious:

  1. Can that indicator only be used for short-term trades?

  2. If it can be used with long-term trades, is there something I need to change from the parameters used? Like, only using SMMA(5,8,13)?

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Is that indicator can only be used for short-term trade?

First of all, indicator works perfect during trends and oscillator works perfectly in the range market(or flat market). So, indicator can be used for long term, as well as short term. I mean if it is a range market, using this or any other indicator will not help much, so it you should consider market direction first.

If it can be used to long-term trade, is there something I need to change from the parameters used? like, only using SMMA(5,8,13)?

The parameters are there to change them. Of course you can change them based on your trading style.

Considering my statement above does not mean that trading is very easy. I never use indicators alone to make trading decisions. It is always good to use oscillator to filter out bad trading signals.

  • Do you realise you can use an oscillator as an indicator? – Victor May 14 '17 at 1:24
  • But will it really help for trading purposes? – Sunuba May 14 '17 at 7:23
  • 2
    Yes, you can have a trading system with buy/sell signals based on oscillator movement in combination with price movement. – Victor May 14 '17 at 11:04

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