This material presents a recognition method using MT4 Alligator. The most important thing to remember about the MT4 Alligator is that it is more responsive to new information relative to the simple moving average. Bearish divergences still produce some good sell signals, but chartists must be careful in strong trends when bearish divergences are actually normal. This MT4 Alligator calculation uses a smoothing factor to place a higher weight on recent data points and is regarded as much more efficient than the linear weighted average.
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