Alligator Indicator

Creator: Bill Williams

• Default Period 1: 13
• Default Period 2: 8
• Default Period 3: 5

There are three lines plotted below the chart in the Alligator Indicator.

1. Green line is Jaws line
2. Blue line is Lips line
3. Red line is Teeth line

You can read this indicator as follows:

When three lines are close to each other, the trend is not clear. The alligator is sleeping.

When a short-term average line crosses the other two upward, a trend might emerge. Alligator is waking up.

When all three lines are in an uptrend and the price is above them, it indicates a strong uptrend. When all three lines are in a downtrend and the price is below them, it indicates a strong downtrend. Alligator is eating.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

Click here to learn more about the indicator.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.