Alligator Indicator


Bill Williams created the Alligator Indicator, which is a technical analysis tool that uses smoothed moving averages. Alligator is used to confirm current price trends & their direction. The indicator uses a smoother average calculated with a simple moving average (set at five, eight and thirteen). The three moving averages comprise of the Jaw, Teeth and Lips of the Alligator.

Parameters:

(13) – Number of Periods to use for Jaw

(8) – Number of Periods to use for Teeth

(5) – Number of Periods to use for Lips

The Jaw (blue line) is the Balance Line for the time frame. Alligator’s Teeth (red line) is the Balance Line for the value time frame of one level lower. The Alligator’s Lips (green line) is the Balance Line for the value time frame, one more level lower.




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