Trade Stock Indices

Alligator Indicator Analysis and Signals for Indices

Developed by Bill William

The Alligator indicator mixes three moving average lines. It uses fractal geometry and nonlinear math.

The 3 smoothed MAs are:

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

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

  • The blue line (Jaw) 13-period Smoothed MA Moving Average, with a shift of 8 bars in to the future.

Alligator Index Indicator Basics - How to Analyze Alligator Indices - Alligator Tool Guide

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

Indices Analysis and How to Generate Signals

When Jaw, Teeth, and Lips close or twist together, the Alligator sleeps. As sleep lasts, hunger grows. After a long rest, it wakes hungry. It opens its mouth first and yawns. Then it smells food: bull or bear meat. The Alligator hunts. Once full, it loses interest in eating or price moves. Balance lines merge. Take profits then.

Examination of the Alligator Indicator for Indices - Analysis and Usage of the Tool

Buy and Sell Trading Signals

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