What Is the Williams Alligator Indicator and How Do You Trade It?

This oscillator is a bit different from many other oscillators, as it’s a dual oscillator. Eating phase – The eating phase is when there are green bars on both sides of the oscillator. This means that the alligator is trending, meaning that it is eating. In this scenario, you should be trying everything you can to keep your position open in order to get as many prophets as possible.

The parameters are available on the Parameters tab of the GATOR Properties dialog box under the Calculation heading. The week will have the biggest event in the US political process over the last two years. We covered the most important news of this week in this report. Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction.

You can sell an asset if you see the complete red column in gator oscillator histogram. Stop loss can be placed slightly above the previous resistance level. Trading stocks, options, futures and forex involves speculation, and the risk of loss can be substantial.

I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Depending on the preceding trend, buying or selling opportunities are suggested when both histograms are at zero level, which conforms to intersection of the three Williams Alligator lines. This indicator was originally developed by Bill M. Williams. It shows the degree of convergence / divergence of the Alligator lines. To apply a GATOR oscillator to a chart, a trader needs to follow the procedure common to all Marketscope indicators.

At this point, the dialogue box allows the trader to change colors, levels, and visualization, but the main parameters are going to be for the Jaws period, Teeth period, and the Lips period. Deepen your knowledge of technical analysis indicators and hone your skills as a trader. On the other hand, if the gator bars are below the zero line and the Alligator indicator green line is below the price, it signifies an uptrend. Gator uses the convergence/divergence of the three lines from the Alligator indicator to highlight the market trend. Developed by Bill Williams, the Gator oscillator tells about the trend’s direction in multiple phases. It is a supplement to the Williams Alligator indicator and is often alongside the indicator.

Up line style – the parameter is similar to the Line style parameter of all the other standard indicators of Marketscope. Up line width – the parameter is similar to the Line width parameter of all the other standard indicators of Marketscope. GATOR is one of five Bill Williams’ indicators included in the list of standard indicators of Marketscope (the other four are ALLIGATOR ,FRACTAL , AC (Acceleration/Deceleration), and AO ). It was developed in 1995 and presented in Bill Williams’ bookNew Trading Dimensions. We give calls from Monday to Friday in suggested intervals. In case we couldn’t get through, we will try again at the same time the next day.

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The maximum of the upper histogram coincides with the period of the largest discrepancy between the alligator moving averages, namely the “jaws” and “lips” . Accordingly, the minimum of the lower histogram indicates the maximum discrepancy between the “lips” and the “teeth” of the alligator and will always be negative and below the zero level. The appearance of highs and lows in the histograms means the presence of a strong trend in the market. The Gator Oscillator was developed by Bill Williams and is related to the Alligator Indicator.

It’s used to decide when to enter and exit a trade, as timing in trading is crucial. The alligator “wakes up” – on both sides of the zero level, the histograms are painted in different colors. Supporting documentation for any claims, comparison, statistics, or other technical data will be supplied upon request. TD Ameritrade does not make recommendations or determine the suitability of any security, strategy or course of action for you through your use of our trading tools.

In other words, the moving averages on the Alligator Indicator would be spread wide open, and in a nice trending slope. In technical analysis this indicator is mainly used as a supplementary tool for confirmation signals. Lines of bar chart very clear show divergence or convergence of Alligator lines, and, as the result, show trend or absence of it. Author Bill Willams says that the indicator helps to define time of waking and dream of Alligator. Therefore, it Gator columns are close to zero, it means that Alligator sleeps and there is no trend on market (watch pic. 2) The father bar charts are from zero, the stronger trend is. Visual representation of the indicator is crucial for prompt market analysis, therefore, it is widely used by traders for forecasting trend.

gator oscillator

Alan Farley is a writer and contributor for TheStreet and the editor of Hard Right Edge, one of the first stock trading websites. He is an expert in trading and technical analysis with more than 25 years of experience in the markets. Alan received his bachelor’s in psychology from the University of Pittsburgh and is the author of The Master Swing Trader. Traders have many assets to choose from on the Olymp Trade platform. Exchanging currencies is one of the very popular options. In fact, foreign exchange is the largest market of all.

The upper histogram is the absolute difference between blue and red lines of the Alligator; the lower histogram represents the difference between the values of the red and green lines . According to the author the main goal of the indicator is to simplify the overall strategy’s performance and make its signals more understandable. The the barefoot investor review is typically used in conjunction with the Alligator Indicator, as a secondary indicator. The Alligator Indicator is simply three simple moving averages in the 5, 9, and 13 variety shifted forward in order to smooth out the readings. Some people are confused about letting your trades open with the Gator. Remember that when the indicator shows green bars above and below the zero line, it marks an eating phase.

Growing bar and up line color – the parameter allows to specify the color of the histogram’s bar or line, the value of which is greater than the value of the immediately preceding one. Smoothing method – the parameter allows specifying the smoothing technique to be applied during the calculation of the cycle analytics for traders GATOR values. The possible parameter’s values areMVA, EMA, LWMA, SMMA, Vidya , Vidya , and WMA. Traders choose the smoothing technique in accordance with their needs and preferences. During the procedure, a trader can customize the oscillator by specifying its parameters in the Properties dialog box.

Gator Oscillator by Bill Williams

lexatrade login is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines . The top bar chart is the absolute difference between the values of the blue and the red lines. The bottom bar chart is the absolute difference between the values of the red line and the green line, but with the minus sign, as the bar chart is drawn top-down. In fact, this is a modification of the Alligator indicator, which turns a system of three moving averages into a normal oscillator.

• Most forex traders are trend traders and follow the trend using…
• Information on FairForexBrokers.com should not be seen as a recommendation to trade CFDs or cryptocurrencies or to be considered as investment advice.
• Stop loss can be placed slightly above the previous resistance level.
• As a result, the histogram shows clearly the trend/flat periods and duplicates the moments of the Alligator’s input during the “wakeful” period.
• The Gator oscillator indicates when the trend is strong or weak but it does not point the direction of the trend.

As you can see above, the Gator Oscillator has red and green bars above and below the neutral line. The bottom bar of the indicator represents the difference between the red teeth and the green lip line. The upper bars represent the difference between the blue jaw and the red teeth lines. The green line shows that the price rose while the red line shows that the price declined.

Let’s see what releases will influence the market due to that factor. 4xdev company focuses on the development of various Forex tools (e.g., indicators, EAs, scripts, alerts) and conversion of ones into the needed format. Forex historical data is a must for back testing and trading. Forex data can be compared to fuel and software that uses this data is like an engine. After all the sides of the indicator were revealed, it is right the time for you to try either it will become your tool #1 for trading. Typically, in real strategies, this indicator is used by the active followers of Bill Williams, but necessarily it should be complimented with the other tools.

Application in trade strategy

Awakening phase – The awakening phase is when there are different colors on each side of the oscillator. The awakening phase corresponds to win the moving averages are starting to widen a bit in the Alligator Indicator. The Gator Oscillator eliminates the need for those moving averages by simply plotting down in this window what the moving averages would be doing. As the alligator is awakening, that means that a trend is starting to form. The Gator oscillator is a forex trading tool developed by Bill Williams.

The upper histogram represents the difference between values of Jaw and Teeth plots, the lower histogram represents that of Teeth and Lips plots. Ideally, most traders open a buy position when the indicator opens and then exit when the trend exhaustion phase ends. One can also take profit or exit their trades when the indicator moves in a sated position. Different traders have different approaches when trading using the Gator Oscillator.

Gator-oscillator is a mt4 indicator and it can be used with any forex trading systems / strategies for additional confirmation of trading entries or exits. The website does not provide investment services or personal recommendations to clients to trade any financial instrument. Information on FairForexBrokers.com should not be seen as a recommendation to trade CFDs or cryptocurrencies or to be considered as investment advice. FairForexBrokers.com is not licensed nor authorised to provide advice on investing and related matters.

The Gator oscillator helps determine the trend’s direction. The four phases of the oscillator tell you when to enter or exit the trade. For the Gator oscillator strategy, it’s better to apply the Alligator indicator.