Quotex Strategy: Alligator Jaws

Binary options trading shows no sign of losing popularity, and traders on the Quotex broker platform keep finding new ways to trade effectively. One of these is the "Alligator Jaws" binary options strategy, based on the Alligator indicator, which follows the trend and helps anticipate market reversals.

Before you start buying options, keep in mind that you can reduce your trading risk by using the Quotex cancel loss trade promo code. This allows you to cancel any losing trade up to $10.

How the Alligator Jaws Strategy Works

The Alligator indicator can be used primarily as a set of support and resistance levels, but its core algorithm has three distinct phases:

1. "The alligator is sleeping." During this phase, all of the indicator's lines are intertwined, signaling that the market is in a flat (sideways) phase. Trades should not be opened at these moments, as the probability of a loss is high. However, the longer the "alligator sleeps," the stronger the trend movement that follows.
2. "The alligator is awake." This phase begins right after the flat ("alligator's sleep"). The indicator lines diverge, and a clear gap forms between them. If the alligator points downward, the trend is bearish; if it points upward, the trend is bullish.
3. "The alligator is resting." When the trend starts to weaken, the third phase appears: the alligator's lines begin to converge.

Adding the Alligator Indicator on Quotex

Before applying the strategy on the Quotex trading platform, you need to add the Alligator indicator to the chart:

The indicator's default settings can be left as is — they work well for the binary options market:

Trading the Alligator Jaws Strategy on Quotex

Method #1

One of the simplest ways to trade binary options with this strategy is to buy options when the yellow line crosses the green one. If the crossover happens from above to below, you buy a Put option; if the crossover happens from below to above, you buy a Call option:

Method #2

There is also a more effective approach to trading with this strategy.

As mentioned above, Quotex traders often use the Alligator indicator not only for signals, but also as support and resistance levels. For example, when the market moves down and the candle closes below the yellow line, you can buy a Put option; when the price moves up and the candle closes above the yellow line, you can buy a Call option. These signals become stronger when the price crosses not just one line, but all three.

Call options can be opened on strong signals when:

1. the yellow line crosses the green and red lines from above to below, and the candle then closes near the red line;
2. the candle closes above all three indicator lines (reinforced signal).

For Put options:

1. the yellow line crosses the green and red lines from below to above, and the candle then closes near the red line;
2. the candle closes below all three indicator lines (reinforced signal).

Conclusion

Overall, the Alligator Jaws strategy for the Quotex binary options broker is well suited to beginners who want to learn the basics of trading and start placing their first trades along the trend. Professional traders can also use it, though most likely as a complement to their main trading approach.

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See Also:

• How to Open an Account with Quotex
• How to Verify Your Quotex Account
• Quotex Broker Affiliate Program