Long-Only Reversal Entries with Alligator and Fractal Trend Exits

Summary

This long-only strategy identifies a bullish reversal bar when the candle closes in its upper half, marks a recent low, and remains below all three Williams Alligator lines. A buy stop is placed one tick above that bar’s high, while its low serves as the initial invalidation point: if price reaches the low before triggering entry, the setup is canceled. Optional filters require a declining Awesome Oscillator, a Market Facilitation Index squat condition, or both.

The Williams Alligator and confirmed Williams Fractals track trend state. After entry, the strategy uses the reversal bar’s low as an initial stop and can close when the fractal-based trend state turns downward. The script also allows a chosen trading date window. It describes rule mechanics and indicator rationale but supplies no performance evidence in the provided text. Fractals require later bars to confirm, and the stop and trend logic are rule-based, so behavior can depend on chart timeframe and execution assumptions.

Key ideas

• The setup requires a bullish candle near a recent low, positioned beneath the Alligator’s three lines.
• Entry is triggered above the reversal bar’s high, while its low invalidates the pending setup and initially protects an open trade.
• Optional AO and MFI conditions add momentum and volume-range filters.
• Fractals and Alligator state provide a trend-change exit, without a fixed profit target.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.