Alligator Indices Indicator Technical Analysis and Alligator Indicator Trading Signals

Developed by Bill Williams

Alligator indicator is a combination of three moving average lines that use fractal geometry and nonlinear calculation.

The three smoothed moving averages are:

• The green line (Lips) 5-period Smoothed Moving Average, with a shift of 3 bars into the future.

• The red line (Teeth) 8-period Smoothed Moving Average, with a shift of 5 bars into the future.

• The blueline (Jaw) 13-period Smoothed Moving Average, with a shift of 8 bars into the future.

Lips, Teeth and Jaw show the interaction of different time periods.

Indices Technical Analysis and How to Generate Trading Signals

When Jaw, Teeth and the Lips are closed or intertwined, it means Alligator is going to sleep or is asleep already. As it sleeps, it gets hungrier & hungrier - the longer it will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its mouth & yawn. Then smell of food comes to its nostrils: flesh of a bull or flesh of a bear, and the Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator starts to lose interest in food/ stock indices trading price (Balance Lines join together) - this is the time to take the profit.

Buy & Sell Trading Signals