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How To Read Williams Alligator?

Writer Andrew Davis

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.