The Alligator Strategy Trend Following with SMA 144

The Alligator Strategy: Trend Following with SMA 144

Trading Strategies| Short Term
January 23, 2026

This M15 trend-following strategy combines Bill Williams' Alligator indicator with a 144-period Simple Moving Average (SMA). It provides clear mechanical rules for identifying the trend direction and executing precise buy/sell signals on any currency pair.

Strategy Profile

Timeframe

M15

Trend Filter

SMA 144

Trigger

Alligator Cross

1. Indicator Setup

Configure your chart with the following indicators:

  • Trend Baseline: 144 Simple Moving Average (SMA) - Yellow Line.
  • Signal Indicator: Standard Alligator (Green, Red, Blue lines).

2. Long Entry (Buy) Rules

Execute a Buy order when the market confirms a bullish trend:

  1. Trend: Price is trading above the SMA 144.
  2. Alligator Signal: The Green line crosses both Red and Blue lines from below.
  3. Confirmation: The Red line crosses the Blue line from below.
Alligator Strategy Buy Signal M15
Figure 1: Buy Setup - Price above SMA 144 with Alligator crossover

3. Short Entry (Sell) Rules

Execute a Sell order when the market confirms a bearish trend:

  1. Trend: Price is trading below the SMA 144.
  2. Alligator Signal: The Green line crosses both Red and Blue lines from above.
  3. Confirmation: The Red line crosses the Blue line from above.
Alligator Strategy Sell Signal M15
Figure 2: Sell Setup - Price below SMA 144 with Alligator crossover

Trade Management

  • Stop Loss: Always placed 1 point away from the SMA 144 line (dynamic trailing).
  • Take Profit: Close position when the Green line crosses the Red line in the opposite direction (Trend Reversal).

Ride the Trend: Use the Alligator strategy for precise M15 entries and earn rebates.

⚠️ Disclaimer: The content of this article is strictly for informational purposes and does not constitute investment advice. FXRebate is a rebate and affiliate service, not a broker or fund manager; responsibility for trades and funds lies exclusively with the third-party broker. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. Partner links used do not generate additional costs for you.

Share My Story / Follow FXRebate

▸ You Might Also Like

Alligator IndicatorM15 StrategySMA 144Trend Following
Back to Blog