Alligator indicator or you can call it Bill Williams Alligator indicator is a very unique trend indicator that is inspired by the daily routine of a reptile name Alligator. In this article, I will share everything about the Alligator indicator and how you can use this indicator to place high-quality trades.
What is an Alligator indicator?
The Alligator indicator is a technical analysis tool that was developed by a renowned trader name Bill Williams. This indicator is made from the composition of three smoothed moving averages (SMA) Lines with different time periods name the Jaw (Red line) made from a 13-period SMA and 8-period shift. Lips (Green Line) made from a 5-period SMA and 3-period shift lastly, Teeth made with 8-period SMA and 5-period shift. When these three moving averages lines intersect each other they generate buy and sell signals. You can use this opportunity to find the best entry and exit points.
How to add the Alligator indicator on the Quotex chart?
Step 1: Log in to your Quotex chart. Enter your email address and password.
Step 2: Click the indicator button at the bottom of the page.
Step 3: Select your desired asset and set the default chart to candlestick.
Step 4: Search for Alligator Indicator at the top of the list.
Step 5: Click the name and make the necessary changes as per your requirements.
Step 6: Once you are done click apply.
How to find buy and sell opportunities with an Alligator indicator
The Bullish scenario occurs when the three lines intersect each other and the Lips (green) line is at the bottom following the Teeth line in the middle and the Jaw line at the top. This intersection signals a bullish trend and indicates a potential buying opportunity.
On the other hand, The Bearish scenario occurs when the three lines intersect each other and the Lips (green) line is at the top following the Teeth line in the middle and Jaw line at the bottom. This intersection signals a bearish trend and indicates a potential selling opportunity.