Alligator Indicator mt4

Hi traders

Well, for the next technical indicator that I discuss with you today is Alligator indicator. This indicator is one of Bill Williams indicator. With alligator indicator you can identify trend direction of the Forex market and gives trading signals about a new trend.

Alligator indicator is showed on the trading chart with three moving average indicators, which each moving average indicator has different period setting. If you want use this indicator I suggest you to use daily time frame chart.

Three moving average indicators in alligators has different interpretation.
- blue line as gator jaws is the longest moving average period 13 and shift 8.
- red line as alligator teeth is the 8 period moving average indicator shift 5
- green line as alligator lips is the fast moving average indicator period 5 and shift 3

When the market price is above gator jaws then we can assume the price is in bullish trend and when the market price is below gator jaws then we can assume the price is in bearish trend.

Alligator indicator gives trading signals that determine entry trading position. When the distance between price and moving average indicator we also can assumed the market is in strong trend.

The alligator technical indicator is showed on the trading chart in the shape of moving averages which give trend trading signal. In other words this indicator use 3 Smoothed Moving average to provide trading signals. Alligator indicator is made to define the starting trend and exhaustion trend. But this indicator can not work well in sideways market.

How to read Alligator indicator
If the alligator's lip cross the other smoothed moving average lines from bellow then we can assumed the market is in bullish trend and we can look a long trading position and if the alligator's lip cross the other smoothed moving average lines from above then we can assumed the market is in bearish trend and we can look for a short trading position.