Alligator Indices Indicator Analysis & Alligator Indicator Signals
Developed by Bill William
Alligator indicator is a combination of three moving average lines that use fractal geometry and nonlinear calculation.
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.
Lips, Teeth and Jaw show the interaction of different time periods.
Indices Analysis and How to Generate Signals
When Jaw, Teeth and the Lips are closed or intertwined, it means the Alligator is going to sleep or is asleep already. As it sleeps, it gets hungrier and hungrier - the longer it will sleep, the hungrier it'll wake up. First thing that it does after waking up is to open up its mouth & yawn. Then smell of nice delicious food comes to its nostrils: the 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/ trading price (Balance Lines join together) - this is the time to take the profit.
Buy and Sell Trading Signals
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