Discussing the article: "MQL5 Wizard Techniques you should know (Part 78): Gator and AD Oscillator Strategies for Market Resilience"

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Check out the new article: MQL5 Wizard Techniques you should know (Part 78): Gator and AD Oscillator Strategies for Market Resilience.

The article presents the second half of a structured approach to trading with the Gator Oscillator and Accumulation/Distribution. By introducing five new patterns, the author shows how to filter false moves, detect early reversals, and align signals across timeframes. With clear coding examples and performance tests, the material bridges theory and practice for MQL5 developers.

Pattern-5 is based on a trend trap or a breakout that does not materialize. In the bullish scenario, we have a bull trap, where not every ‘awakening’ of the gator leads to a bullish trend - the case for head fakes. A common bull-trap can occur when the gator oscillator starts to indicate a trend signal, such as when one of the histograms flips green after a multi-bar period of red suggesting an upward trend, however the AD line fails to rise accordingly. In this bull-trap, price could poke above a resistance, with the gator oscillator reflecting that initial move as the jaws/teeth/lips slightly part ways. Nonetheless, the AD would remain flat or even decline, bespeaking a lack of real accumulation. 

If following this, price doesn’t break down after the ‘trap’ and instead quickly reclaims the breakout zone with the gator oscillator mouth still open and the AD on ascendancy, this can imply the trap was a shakeout. If price resumes upward with double confirmation of the oscillators, this can be your bullish trigger. This can be thought of when the ‘bull-trap’ traps the shorts and provides rocket fuel for a genuine breakout.

Author: Stephen Njuki