Bill Williams - Alligator and Gator

Bill Williams - Alligator and Gator

Based on the concept of moving averages and a shift of these averages in the future development of US-American Bill Williams, the alligator indicator for the definition of trend and trend-less market phases and as a derivative of the Gator oscillator, the absolute differences of the moving averages of a particular pair represents.

The goal of Williams was initially simply to create a promising trading system based on moving averages. Based on the finding that moving averages are slow to understand some basics about the price movement of several intersections and their interaction to be seen as the basis of the trading system.

Bill Williams - Alligator and Gator The most important application of the alligator indicator is to quantify the trend strength, based on this quantification should be possible to assess whether items can be kept in trend direction. The agreement with the animal namesake Williams sees in the already mentioned inertia. The sleeping alligator meets a quiet market with closely spaced moving averages, the longer you sleep the greater the hunger takes the animal and also in the market. This hunger is finally compensated by a "tearing of the mouth," the market suggests a trend towards the three moving averages start to diverge. A strong trend is evident in an open mouth, only when the hunger subsides (the trend is weaker), the average lines run back to each other.

The associated Gator Oscillator is a little different, he visualizes strong price trends has strong deviations from the midline. Possible changes in market direction can be about differences between the variations above or below indicate. The oscillator can be used in so far as an early warning system as a decreasing variation in the bottom of a weakening trend heralds.