The Secret Sauce of Pro Traders: Williams Alligator + Double Top Strategy

Why Most Traders Miss the Easiest Profits (And How You Won’t)

Imagine this: You’re at an all-you-can-eat buffet, but instead of choosing the best dishes, you keep piling your plate with the cheapest, blandest food. That’s how many traders operate—they ignore high-probability setups and feast on scraps.

If you’ve ever felt like the market is playing a cruel joke on you—where your trades reverse the moment you enter—it’s time to change the game. Today, we’re diving into a deadly combination that pros use but few talk about: Williams Alligator + Double Top.

What Is the Williams Alligator (And Why Does It Bite?)

Bill Williams, a legendary trader, designed the Williams Alligator indicator to help traders identify trends before they become obvious to the masses. Think of it as a sleeping beast—when it wakes up, it hunts trends mercilessly.

The Alligator consists of three moving averages:

• Jaw (Blue Line): Slowest-moving average (13-period Smoothed MA shifted 8 bars forward).
• Teeth (Red Line): Medium speed (8-period Smoothed MA shifted 5 bars forward).
• Lips (Green Line): Fastest-moving average (5-period Smoothed MA shifted 3 bars forward).

How It Works:

• When the lines are intertwined, the Alligator is sleeping (no trend—stay away).
• When the lips cross above the teeth and jaw, it signals a bullish trend.
• When the lips cross below the teeth and jaw, it signals a bearish trend.

Now, let’s add another deadly weapon to our arsenal.

The Double Top: A Trader’s Best Friend (If You Know How to Spot It)

A double top is one of the most reliable reversal patterns in Forex. It’s like watching a boxer throw two big punches but failing to knock out their opponent—after the second failed attempt, the fighter (price) collapses.

How to Spot a Double Top:

1. Price Forms Two Peaks: These peaks should be roughly the same height, with a moderate pullback in between.
2. Volume Declines on the Second Top: This indicates buyers are exhausted.
3. Neckline Breaks: Once the price falls below the midpoint of the pattern, the real move begins.

Now, what happens when you mix this with the Williams Alligator? Trading magic.

The Hidden Formula: Using Williams Alligator + Double Top for Maximum Gains

Most traders use the Williams Alligator wrong—they only look for trend confirmation. But the real power comes when you combine it with reversal patterns like the double top.

Step-By-Step Strategy:

1. Identify a Double Top forming at a key resistance level.
2. Check the Williams Alligator:
   • If the lips (green) are crossing below the teeth (red) and jaw (blue), the Alligator is waking up for a bearish trend.
3. Wait for the Neckline Break:
   • This confirms that sellers are in control.
4. Enter the Trade on the Retest of the Neckline.
5. Set Stop Loss Above the Second Peak.
6. Target the Measured Move:
   • Take the height of the double top and subtract it from the neckline to project your profit target.

Why This Works:

• The Williams Alligator confirms the trend shift while the double top confirms the reversal.
• This eliminates false breakouts, increasing win rates significantly.
• It’s a high-probability setup that professionals use but rarely teach.

Pro Traders’ Secret: Filtering the Best Setups

Insider Tip: Only trade this setup when the market has strong momentum. Avoid weak, choppy conditions where price action is unpredictable.

Extra Filters for Bulletproof Trades:

✅ Check Economic Calendar – Avoid major news events that can trigger false breakouts.

✅ Look for Divergence on RSI – If RSI forms a lower high while the double top forms, it’s extra confirmation.

✅ Use Volume Confirmation – Weak volume on the second top signals a high-probability reversal.

Real-World Example: How a Pro Trader Caught a Perfect Entry

In December 2023, EUR/USD formed a textbook double top around 1.1120. Meanwhile, the Williams Alligator flipped bearish, with the lips (green) crossing below the teeth (red) and jaw (blue). When price broke the neckline at 1.1050, a sell order was triggered.

Results: ???? Entry: 1.1050 ???? Stop Loss: 1.1130 (above the second peak) ???? Take Profit: 1.0960 (measured move projection)

Total Gain: 90 Pips in 24 Hours.

Final Thoughts: Why You Need to Add This to Your Trading Arsenal

Most traders blindly follow indicators, but pro traders use them with confluence. The Williams Alligator + Double Top strategy is a next-level trading setup that allows you to catch high-probability reversals with precision.

Key Takeaways:

✅ Williams Alligator helps identify trend shifts before the masses.

✅ The Double Top confirms a high-probability reversal.

✅ Combining both filters out weak setups and increases win rates.

✅ Pro traders use this setup to avoid false breakouts and maximize profits.

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Trade smart. Trade like a pro.

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Image Credits: Cover image at the top is AI-generated