Home
로그인실제 계정
거래할 준비가 되셨나요?
지금 등록하세요

Alligator

The Alligator indicator is the most interesting of all trend indicators. It was introduced by famous and successful trader Bill Williams, the author of the Chaos Theory. His indicator is strange not only because of its name but because it has all animal qualities: it can “sleep” or “open its mouth” if hungry. These two indicator properties have the practical meaning – they are the trading signals not to trade (when an alligator is sleeping) or to trade in the direction of the open mouth.

Let’s try to understand it. The first fact you should know is that the indicator is based on 3 moving averages with different period displaced to some bars. The indicator standard settings will be as follows:

1) The Alligator’s Jaw is the 13-period smoothed moving average (SMMA) built on the bar average value (a sum of maximum and minimum prices divided into two) and moved into the future by 8 bars;

2) The Alligator’s Teeth is the 8-period SMMA built on a median price and moved into the future by 5 bars;

3) The Alligator’s Lips is the 5-period smoothed moving average (SMMA) moved into the future by 3 bars.

Here is an example of the Alligator settings when installing:

Alligator indicator will look on the chart as follows:

This indicator was created to exclude false signals if no trend. The moving averages can give many false signals during the flat. And as the Alligator author expected the modified averages moved into the future let you start or stop trading on time. To understand how to do it we should study the sleeping and waking cycles of the alligator.

The main signal to buy calls or puts is “opening the mouth” – the moment when the averages begin to separate to different sides and stop crossing. A direction of opening a deal is determined in accordance with the averages direction: if they move upward it is a signal to trade online, if they move downward it is a signal to buy puts. A signal of closing your deal will be “shutting the mouth” – the moment when the moving averages start closing and crossing. You can see the example on the chart:

At first it may seem difficult, but if we remember the method of working with three averages we will see the same situation – the fast average crosses the slower one and gives a signal to trade. If the price chart is above the indicator we trade online and in a reverse situation when the chart is below the indicator we can buy puts.

To understand how the indicator works we recommend you to install it on your chart and test its signals on the quotes history. Such training let you get used to a currency pair and understand its signals. You can also watch trading signals on a real time chart.

Online trading in the small intervals let you understand how the indicator works on a definite currency. And when you understand how to open deals you will start to earn. But always remember: no trading while the alligator is sleeping.

거래할 준비가 되셨나요?
지금 등록하세요
ExpertOption

Company doesn't provide services to citizens and residents of Australia, Canada, EU Member States, Iceland, Iran, Israel, Liechtenstein, New Zealand, North Korea, Norway, Puerto Rico, Russia, Singapore, Sudan, Switzerland, UK, USA, and Yemen

파트너
제휴 프로그램
Partners

지불 방법

Payment and Withdrawal methods
이 사이트에서 제공하는 작업은 고위험 작업이 될 수 있으며 실행 역시 높은 위험성을 가지고 있습니다. 이 사이트에서 제공하는 금융 상품 및 서비스를 구매하실 경우, 투자 금액의 심각한 손실을 초래하거나 계정에 있는 금액을 모두 잃게 될 수도 있습니다. 사용자는 사이트에서 제공하는 서비스와 관련하여 개인적, 비상업적, 양도 불가능한 용도로만 이 사이트에 포함된 IP를 사용할 수 있는 제한적 비독점적 권리를 부여받습니다.
© 2014–2023 ExpertOption
ExpertOption. 무단 복제 금지.