Alligator Indicators for MetaTrader 4

Alligator

“Most of the time the market remains stationary. Only for some 15–30% of time the market generates trends, and traders who are not located in the exchange itself derive most of their profits from the trends. My Grandfather used to repeat: “Even a blind chicken will find its corns, if it is always fed at the same time”. We call the trade on the trend “a blind chicken market”. It took us years, but we have produced an indicator, that lets us always keep our powder dry until we reach the blind chicken market”

Bill Williams

Understanding Alligator Indicator will help you immensely from trade to trade on Forex. Alligator Technical Indicator is a combination of Balance Lines that use fractal geometry and nonlinear dynamics.

• The blue line (Alligator’s Jaw) is the Balance Line for the timeframe that was used to build the chart (13-period Smoothed Moving Average, moved into the future by 8 bars);
• The red line (Alligator’s Teeth) is the Balance Line for the value timeframe of one level lower (8-period Smoothed Moving Average, moved by 5 bars into the future);
• The green line (Alligator’s Lips) is the Balance Line for the value timeframe, one more level lower (5-period Smoothed Moving Average, moved by 3 bars into the future).

Lips, Teeth and Jaw of the Alligator show the interaction of different time periods. As clear trends can be seen only 15 to 30 per cent of the time, it is essential to follow them and refrain from working on markets that fluctuate only within certain price periods.

It is based on a 13-period Smoothed Moving Average, moved 8 bars into the future. The red line represents the Alligator’s Teeth. It is based on an 8-period Smoothed Moving Average, moved 5 bars into the future. The green line represents the Alligator’s Lips. It is based 5-period Smoothed Moving Average, moved 3 bars into the future. Lips, Teeth and Jaw of the Alligator show the interaction of different time periods. As the 3 lines move, clear trends develop. The Alligator indicator indicates when to follow the trend and when to refrain from entering the market over certain periods.