The Alligator opens up in the lower left of the chart, and the uptrend continues for some time. Afterward, two small downtrends are formed. Following a sell signal to the downside, a brief uptrend occurs.

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How do you read an Alligator indicator?

The alligator indicator, like many others, plots a variety of moving averages (MAs) on a chart to determine trend direction. A blue line represents the jaw, a red line represents the teeth, and a green line represents the lips; all three moving averages are used to represent the ‘alligator’.

Is Williams Alligator a good indicator?

In the same way that moving averages are lagging indicators, the alligator is one. Having to wait so long for a trade signal means missing out on some potential gains.

What is Williams alligator indicator?

In 1995, Bill Williams introduced the Alligator Indicator. Despite this, it is still a very popular trading indicator. The beast’s jaw, teeth, and lips (or something resembling lips) are depicted in three lines superimposed on a pricing chart.