The first moving average is calculated according to the formula, which is the same for a simple moving average, whereas the difference is that median prices are summed. In Depth Guide to Price Action Trading: Powerful Swing Trading The next article in this series on the Alligator indicator will discuss how this indicator is used in forex trading and how to read the various graphical signals that are generated. How to Start Forex Trading. Trade in your browser. Forex EDGE Pro EA. The Bill Williams Alligator trading system certainly offers more colourful imagery than normal indicators, which some people may find appealing.

In order to add Alligator indicator to Metatrader 4 chart:. Alligator indicator helps to determine the presence and absence of a trend as well as its direction. For an uptrend to be true and valid 3 lines Jaws, Teeth and Lips of Alligator indicator must be laid out appropriate way: Jaws at the bottom bluethen teeth redthen lips Alligatlr on top. Opposite for downtrend: jaws on top blueteeth redthen lips below green.

If lines are intertwined or laid in the wrong order or are moving close together as one, it means that Alligator is sleeping with its mouth closed. Traders should not open new trades. As Alligator sleeps it becomes hungry. The longer he sleeps the hungrier he becomes — the longer the market stays without a trend, the Best forex indicator Alligator vigorously it will break into a new trend. When the trend starts, Alligator wakes up and opens it mouth 3 lines get into order flrex start to move apart — this is the time to start trading with a trend.

When Alligator is full and happy, he closes his mouth and goes to sleep again — the 3 lines move closer together or intertwine again. I don't know the reason for it, possibly usability or visual backtesting just a guess. Either way, Alligator indicator will only show Alligtaor happening now, it won't get any forecasting value no matter what Shift settings are. It also wise for a trader to consider using other indicators rather than the alligator alone. This way, the trader will be able to minimize losses.

Keep on studying, mate. Williams is a man who created many useful indicators, but this is not his website : Alligator indicator should be supported by an oscillator to know when the Alligator is sleeping or hungry please kindly fixing time to entry and exit to be explained. Then, as the signal appears on the primary time frame, a trader can enter a trade immediately, or as an option go one time frame lower to see the smaller market changes in action and pick a better price for an entry there.

Also the lower time frames help with re-entries. It's all nice in theory, and easy to show past charts, but when you're trading live, and things are moving forward, it's a bit of a different story. The example here, if you were to go with the point when things actually get drawn on the indicator, you wouldn't even get a confirmation from the alligator until aboutwhich is about pips that it's dropped already.

That makes a lot of traders nervous, because Alligatoe with big movements come big retracements. And with the alligator's significant lag, it's a big question or not of how effective the alligator really is. Again, looks great "after" the fact, but not when you're trading live, watching the indicator currency forex currency trading finding your market 50. My charting software doesn't have Smoothed MA as an option, is it sometimes called something else ie simple?

Smoothed Ma if you have coustom indicators try this formula MS. Hope this helps The Aligator indicator is one addition to the lagging indicators out there. When Long: if the price bar closes below Alligator's teeth red line - exit. When Shot: if the candle closes above Alligator's teeth - exit. Best forex indicator Alligator Decline Line ADL.

Average Directional Index ADX. Best forex indicator Alligator Directional Movement Index Rating ADXR. Bulls and Besrs Power. Commodity Selection Index CSI. Double Exponential Moving Average DEMA. Moving Indlcator EMA, SMA, WMA. Percentage Price Alligatro PPO. Triple Exponential Moving Average TEMA. Triple Exponential Moving Average TRIX. Accumulative Swing Index ASI. Advance Decline Ratio ADR.

Commodity Channel Index CCI. Relative Strength Index RSI. Average True Range ATR. Chaikin Money Flow CMF. Detrended Price Oscillator DPO. Market Facilitation Index MFI. The best of MT4 indicators. Indicators for Account Monitoring. Can anyone explain the rationale behind shifting Best forex indicator Alligator Alligator lines forward in indciator Williams is a man who created many useful indicators, but this is not his website :.

Alligator indicator should be supported by an oscillator to know when the Alligator is sleeping or hungry. Trades should choose 1 primary time frame to trade with: plan entries and exits. Stops can be effectively trailed behind the Alligator's jaw blue line. The Aligator indicator is one addition to the lagging indicators out there. I understand the entries with the Alligator. What is the exit signal? Exit rules would be as follows:. When Alligator changes the signals from Buy to Sell and vise verse - exit.

Alligator indicatpr by Bill Williams. Alligator indicator consists of 3 Moving averages:. How to trade with Alligator Indicator. Don't feed the Alligator when it sleeps! I meanhow can one determine the stop-loss using the alligator? It is Simple MA, I've somehow managed to misspell it.

Bill Williams Awesome Oscillator Trade Setups

Alligator indicator consists of 3 Moving averages: Alligator ’s jaws (blue line) – period Simple Moving Average built from (High+Low)/2, moved into the future. Bill Williams introduced the Alligator indicator in The Alligator is as much a metaphor as it is an indicator. It consists of three lines, overlaid on a pricing. Tag: forex indicator alligator. Top Expert Advisors April Best Forex EA’s – FX Robots Dear fellow Forex trader, Welcome to this % free testing website.