The anatomy of the indicator
According to Bill Williams trading in the zone helps to maximize/double/triple profits when the market goes your way, namely, when momentum, acceleration and price confirm that you have strong trend or acceleration period. Armed with this information you can add to positions aggressively.
Please, note that this is a reactive indicator and signals are triggered after the price has already accelerated. It can be used to get into trends safely or adding to positions aggresively. For the record, it makes use of the following:
- Alligator to find strong trends
- AC and AO to identify trading zones
- MACD to avoid trading exhausted trends
Settings and Input Parameters
When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Indicator Settings
- Customize the alligator and macd indicator settings.
- Enable display/email/push/sound alerts for all the trading setups enabled.