Home
登录真实账户
準備好交易了嗎?
馬上註冊

Alligator Indicator 

 

The Alligator indicator stands out as one of the most intriguing trend indicators. Introduced by the renowned trader Bill Williams, the author of chaos theory, this indicator is peculiar not only due to its name but also because it possesses animal-like qualities. It can either "sleep" or "open its mouth" when hungry. These two properties of the indicator hold practical significance — they serve as trading signals, indicating when to refrain from trading (during the alligator's sleep) or when to trade in the direction of its open mouth.

Let's delve into its mechanics. The first essential piece of information is that the indicator is based on three moving averages with different periods displaced by a certain number of bars. The standard settings for the indicator are as follows:

  1. Alligator’s Jaw: 13-period smoothed moving average (SMMA) built on the average bar value and shifted into the future by 8 bars.

  2. Alligator’s Teeth: 8-period SMMA built on the median price and shifted into the future by 5 bars.

  3. Alligator’s Lips: 5-period SMMA shifted into the future by 3 bars.

Here is an example of the Alligator settings during installation:

On the chart, the Alligator indicator will appear as follows:

This indicator was developed to eliminate false signals during non-trending periods. Moving averages can produce numerous false signals in flat markets. As anticipated by the Alligator's author, the modified averages shifted into the future to enable timely initiation or cessation of trades. To comprehend this, one needs to grasp the cycles of the Alligator's sleep and wakefulness.

The primary signal to buy calls or puts is the "opening of the mouth" — the moment when the averages start to separate to different sides and cease crossing. The direction of the trade is determined by the averages' direction: an upward movement signals online trading, while a downward movement indicates buying puts. The signal to close a deal is the "closing of the mouth" — the moment when the moving averages commence closing and crossing. An example on the chart illustrates this:

Initially, it may seem complex, but if we recall the method of working with three averages, we observe a similar situation — the fast average crosses the slower one, providing a trade signal. If the price chart is above the indicator, we trade online. But when the chart is below the indicator, we can buy puts.

To comprehend how the indicator operates, we recommend installing it on your chart and testing its signals on historical quotes. This practice helps you become accustomed to a currency pair and understand its signals. You can also observe trading signals on a real-time chart.

Engaging in online trading at small intervals allows you to grasp how the indicator performs on a specific trading instrument. Once you understand how to initiate trades, you will begin to earn. However, always bear in mind: refrain from trading while the Alligator is sleeping.

準備好交易了嗎?
馬上註冊
ExpertOption

本公司不向澳洲、奧地利、白俄羅斯、比利時、保加利亞、加拿大、克羅埃西亞、塞普勒斯共和國、捷克共和國、丹麥、愛沙尼亞、芬蘭、法國、德國、希臘、匈牙利、冰島、伊朗、愛爾蘭、以色列、義大利、拉脫維亞、列支敦士登、立陶宛、盧森堡、馬爾他、緬甸、荷蘭、紐西蘭、北韓、挪威、波蘭、葡萄牙、波多黎各、羅馬尼亞、俄羅斯、新加坡、斯洛伐克、斯洛維尼亞、南蘇丹、西班牙、蘇丹、瑞典、瑞士、英國、烏克蘭、美國、葉門.

合作伙伴
合作计划
Partners

支付方式

Payment and Withdrawal methods
本网站提供的交易可视为高风险操作,其执行可能涉及重大风险。在买卖网站提供的金融工具和服务时,可能会给您带来显著的投资损失,甚至亏损账户的全部资金。您被授予有限的非独家权利(包含个人、非商业、不可转让的知识产权)使用本网站所提供的服务。
由於EOLabs LLC不受JFSA監管,因此不涉及任何被視為向日本提供金融產品和招攬金融服務的行為,該網站也不面向日本居民。
© 2014–2024 ExpertOption
ExpertOption版权所有。