Alligator williams: Bill Williams trader Wikipedia

moving average convergence

Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums. Once you have it, use the Alligator for confirmation (i.e. wait for the green line to cross other lines).

market trend

In case we couldn’t get through, we will try again at the same time the next day. Figuring out what is MACD & how to use the Moving Average Convergence Divergence indicator to make a profit. Any MetaTrader terminal offers such parameters by default. These are the Alligator indicator default parameters offered in the LiteFinance client profile. The Take Profit is set at the distance twice as much that of the stop loss. The Fractals indicator does not require setting parameters.

If it looks like the trend is set to continue, and a bearish engulfing candlestick occurs, this could be a signal to sell. Remember to set a stop a few pips above the high of the engulfing candle. You can also open your position using a deposit – called margin – which can lower the cost of entry when trading. However, trading on margin comes with added risk, as you could lose more than your initial deposit. That’s because you’ll still get exposure to the full value of the trade, and both your profit and loss is based on the full value. To get the alligator indicator formula, you must first determine the median price of each candlestick, which is calculated as (high price + low price) / 2.

The Alligator is waking up

The initial smoothed average is calculated with a simple moving average, adding additional smoothed averages that slow down indicator turns. In the opposite case, after the Alligator thoroughly ate, it begins to lose interest in food, moving averages begin to converge. This is nothing but a new consolidation after a fast trend. At this time and according to his theory, in accordance with the general concept of technical analysis, a trader should close his positions and wait for a new trend to begin. When the institutional forex market became a reality in the 1990s, several investors emerged as the discipline’s gurus.

Here you can see obvious pullbacks that have pulled to the convenience yield commodity trading strategy and red line while the blue kept the upwards slope. You want to see all lines pointed in the same direction, in order. You can see in this graphic the 3 lines mixed together. When this occurs, section of the previous high and low and using your entry tactics, trade inside the range. As the green line continues in one direction, the red line which represents the teeth of the Alligator, begins to separate and move in the same direction – the teeth are opening.


The indicator is relatively simple to use, so that of course makes it popular as well. The above diagram illustrates just such an ideal trading example. The Alligator is sleeping, as indicated in the upper left of the chart. When the first CCI Alert occurs, it is time to take aim.

What signals are provided by the Alligator?

However, it has the fastest reaction to the price changes. This moving average is the first to react to changes in the balance of power of buyers and sellers in the market. This line is used to add up to the opened positions in the trend if there is strong momentum in the chart. The Williams Alligator is a standard technical analysis tool that comes with most trading platforms by default. You can find the Alligator in the list of classic trend indicators of the MetaTrader terminal, as well as in thepersonal profile of the LiteFinance brokerage company.

  • Its main purpose is to seek out trends, and to determine possible entry and exit points of your forex trade.
  • The use of the Alligator indicator is to determine which Trend moves Up or Down.
  • There are three moving averages, which are set at 5, 8, and 13.

In a trading range, the Alligator’s “mouth” is closed. With the beginning of the trend, it begins to “open up” and “eat.” Let’s take a look at what signals the Alligator generates. The line is the average strength support/resistance level. It serves to enter trades when the trend is not that strong. If the instrument is within the daily ATR , the Teeth line can be an excellent marker for entering trades in the trend.

Pullbacks to Alligator

With that in mind, the indicator by itself won’t be sufficient enough to have a working system built around it. Granted, it can give you an idea when to get in and out of the market, but it also could cause a lot of choppy results if you are not cautious. The alligator indicator comes built into the Metatrader platform, therefore attracts a lot of attention due to that alone. Zoom out of the chart using the mouse wheel to recognize these patterns. If you are zoomed in, you won’t be able to see the contraction and expansion. Once you know how to recognize a sideways market from a trending market, you can use the indicator for your William Alligator strategy.


Bill Williams, the trader who developed the alligator indicator, believed that markets only follow a trend 15% to 30% of the time. Let’s explore the alligator indicator and see how it’s used to identify trends in forex trading. The jaw is the 13-period smoothed moving average that is moved into the future by 8 bars. The teeth is the 8-smoothed moving average that is moved five days into the future while the lips is the 5-period smoothed moving average that is moved by 3 bars into the future.

Long signal

If the Alligator is not asleep, the market is either in an uptrend or a downtrend. A stop loss is set above the high of the most recent upward fractal. The third candlestick has a high above the previous bars.


The broker is headquartered in New Zealand which explains why it has flown under the radar for a few years but it is a great broker that is now building a global following. The BlackBull Markets site is intuitive and easy to use, making it an ideal choice for beginners. The weakness in the indicator is that timing may lag due to its future positioning, the reason for attaching a momentum indicator to anticipate the Alligator’s signal. The CCI alerts signaled overbought or oversold conditions for each occasion. Candlesticks also provide additional insights into what the expectations of the market might be going forward.

As shown below, the EUR/USD pair reversed its descent when the three reversed. A buy signal usually comes when three lines reverses and the jaw remains on the right sides. As the price rises, you should watch as it moves below the green line. As mentioned above, the alligator indicator has three lines. As with all indicators with such lines, the most important things to watch are the crossovers. The next step is to look at the numbers that are in the indicator.

The longer the Alligator sleeps, the hungrier it wakes. When it wakes up from a long sleep, it opens its mouth and gets ready to take a big bite of the market. The Alligator will chase the price far away and offer a decent profit to a trader. Having eaten enough, the Alligator goes back to sleep , so it’s time to take profit. Most of the positive reviews boil down to the fact that the Alligator technical indicator is simple and its signals are clear.

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