The Williams Alligator & Ascending Triangle: The Unconventional Trading Power Duo

The Hidden Trading Trick Most Pros Won’t Tell You

Ever feel like the Forex market is a mysterious beast, luring you in with promise but then devouring your trades like a midnight snack? You’re not alone. Many traders get caught up in the chaos, relying on popular indicators without fully understanding how to make them work together.

But today, we’re going to break out of that trap by combining two seemingly unrelated but incredibly powerful tools: the Williams Alligator and the Ascending Triangle. When used right, this combo can help you spot high-probability breakout trades while filtering out the noise that ruins most setups.

If you’ve been struggling with false breakouts, messy charts, and indicators that seem to contradict each other, keep reading. You’re about to discover a ninja-level strategy that can change the way you trade forever.

The Williams Alligator: Why Most Traders Use It Wrong

You may have heard about Bill Williams’ Alligator Indicator—a set of three moving averages designed to track market trends. But most traders make the mistake of treating it like a simple trend-following tool, leading to poor entries and missed opportunities.

How It Works (The Right Way)

The Williams Alligator consists of three lines:

• Jaw (Blue Line): The slowest moving average, acting as a long-term trend guide.
• Teeth (Red Line): The medium-paced line, signaling short-term trend direction.
• Lips (Green Line): The fastest line, indicating immediate momentum shifts.

When the Alligator is “asleep” (lines intertwined), the market is in consolidation. When it “wakes up” (lines spread apart), a new trend is forming. The trick is to combine this with a strong chart pattern, like the ascending triangle, to validate breakouts.

The Ascending Triangle: The Breakout Pattern That Never Gets Old

An ascending triangle is a bullish continuation pattern that traders often overlook—or worse, misinterpret. Unlike the classic breakout traders who jump in blindly at resistance levels, smart traders know that not all breakouts are created equal.

How to Spot a High-Probability Triangle

• Flat Resistance Line: Price struggles to break above a key level multiple times.
• Higher Lows: Price keeps forming higher lows, showing that buyers are gaining strength.
• Volume Confirmation: A breakout should be accompanied by an increase in volume.

Now, here’s where the magic happens—when you merge the Alligator with the triangle.

How to Combine the Williams Alligator & Ascending Triangle for Maximum Profits

Step 1: Identify an Ascending Triangle Formation

Look for an ascending triangle forming on a higher timeframe (H4 or daily) for stronger signals.

Step 2: Check the Alligator’s Condition

• If the Alligator is sleeping (lines intertwined), the market is consolidating.
• If the Lips (Green) cross over the Teeth (Red) and then the Jaw (Blue) as the price nears resistance, momentum is building for a breakout.

Step 3: Wait for a Confirmed Breakout

• The price must close above the resistance line on strong volume.
• The Alligator’s Lips, Teeth, and Jaw should be expanding, confirming a new trend.
• A successful retest of the resistance level as support is the final green light.

Step 4: Entry & Risk Management

• Entry: Buy on the breakout candle or after a successful retest.
• Stop-Loss: Just below the most recent higher low inside the triangle.
• Take Profit: Measure the height of the triangle and project that upward.

Case Study: How This Strategy Nailed a 150-Pip Move

Let’s look at a real-world example. In November 2023, GBP/USD formed a textbook ascending triangle on the H4 chart. Meanwhile, the Williams Alligator was “asleep”—its lines were tangled, signaling consolidation.

But then, something changed.

• As price approached resistance, the Alligator’s Lips (Green) crossed the Teeth (Red), showing a momentum shift.
• Price broke resistance on high volume, and the Alligator’s Jaw, Teeth, and Lips expanded outward.
• A retest followed, confirming new support. The trade went long at 1.2250, hitting a 150-pip profit in just a few days.

Why This Works: The Psychology Behind the Strategy

Traders fail not because they lack indicators but because they don’t understand market psychology. Here’s why this strategy is so powerful:

• The ascending triangle shows increasing buyer pressure, but not all breakouts succeed.
• The Williams Alligator filters out fakeouts, ensuring we only trade when momentum aligns.
• By waiting for confirmation (Alligator wake-up + volume + retest), we only enter high-probability setups.

Final Thoughts: Stop Trading Blindly, Start Trading Smart

If you’ve ever been frustrated by failed breakouts, the combination of the Williams Alligator and the Ascending Triangle might be the missing piece in your trading strategy. This duo helps you filter out bad trades, confirm strong momentum, and enter only when the odds are stacked in your favor.

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