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HOW TO TRADE WITH ALLIGATOR TECHNICAL INDICATOR

Alligator indicator, an attractive indicator, is developed by Bill Williams in 1995. The indicator is named after Alligator because of its formation. It is composed of three Smoothed Moving Average, a 5 period Smoothed Moving Average(named as lip of the alligator) , an 8 period Smoothed Moving Average(named as teeth of the alligator) and a 13 period Smoothed Moving Average(named as jaw of the alligator).

The specialty of this technical indicator is that it works as a complete trading system.This indicator is a trend indicator that indicates upcoming bullish or bearish trend. The indicator is effective on the charts of greater than 30m time frame.

With the alligator technical indicator, a bullish trend is indicated when the lips of the alligator (5 period Smoothed Moving Average) crosses the jaws(8 period Smoothed Moving Average) and teeth(13 period Smoothed Moving Average) of the alligator from below.

In other way, a bullish trend is indicated when the price crosses the lips, teeth and jaws of the alligator form below. When such situations are appeared, a long entry is suggested.

Similarly, a bearish trend is indicated when the lips of the alligator (5 period Smoothed Moving Average) crosses the jaws(8 period Smoothed Moving Average) and teeth(13 period Smoothed Moving Average) of the alligator from above.

In other way, a bearish trend is indicated when the price crosses the lips, teeth and jaws of the alligator form above. When such situations are appeared, a short entry is suggested.

It should be noted that when Alligator's lips, teeth and jaws are together it means the alligator is sleeping. It indicates that when the Alligator will wake up it will be very hungry. It is an indication of upcoming large move in the market. No matter whether it is bullish or bearish. 

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