Alligator Indicator Analysis - Overview of Alligator Trading Indicator Signals
Developed & Created by Bill William
The Alligator indicator mixes three moving average lines. It uses fractal geometry and nonlinear math.
The three smoothed moving averages are:
- Green-line (Lips) 5-period Smoothed MA, with a shift of 3 bars into the future.
- The red line (Teeth) 8-period Smoothed Moving Average, with a shift of 5 bars into the future.
- The blue line (Jaw) 13-period Smoothed Moving Average, with a shift of 8 bars into the future.

Lips, Teeth & Jaw show the interaction of different timeframe periods.
Trading Analysis and How to Generate Trading Signals
When the Jaw, Teeth, and Lips are shut or touching each other, it means the Alligator is either sleeping or about to sleep. As it sleeps, it starts to get more hungry, and the longer it sleeps, the more hungry it becomes when it wakes up. The first thing it will do when waking up is to open its mouth really wide. Then it smells tasty food, like a bull or a bear, and the Alligator starts looking to catch it. When it has eaten enough to feel full, the Alligator starts to not care about the food or price (Balance Lines come together), and this is the time to take the profit.

Buy & Sell Signals
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