Alligator Indicator Technical Analysis & Alligator Indicator Signals

Developed by Bill Williams

Alligator indicator is a combination of three moving average lines that use fractal geometry & 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.

Gold Analysis & Generating Signals

When Jaw, Teeth and Lips are closed or intertwined, it means 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 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 Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator starts to lose interest in food/ price (Balance Lines join together) - this is the time to take the profit.

Buy and Sell Signals