What is Alligator Indicator? Currency Trading Indicators

What is Alligator Indicator?
       Alligator is one of the technical Indicators which are a combination of Moving Averages. Three lines are used to calculate the trend which is as follows.

• Blue line: Balance Line of the value timeframe to be used to assemble chart. In this line is called as Alligator’s Jaw.
• Red line: Balance Line for the timeframe of one minimum level. This line is called as Alligator’s Teeth.
• Green line: Balance Line for the timeframe of one more lower level. This line is called as Alligator’s Lips.

       Green, Red and Blue lines of the Alligator show the boundary of different time periods. Obvious trends can be seen only 15-30% of the time, it is necessary to follow them and desist from effective on markets that vary only within definite price periods. When Alligator Jaw, Alligator Teeth and Alligator Lips are closed or tangled, it means the Alligator is going to sleep or is already sleeping.

Calculation:

            MEDIAN PRICE = (HIGH + LOW) / 2
            ALLIGATORS JAW = SMMA (MEDEAN PRICE, 13, 8)
            ALLIGATORS TEETH = SMMA (MEDEAN PRICE, 8, 5)
            ALLIGATORS LIPS = SMMA (MEDEAN PRICE, 5, 3)

High - Highest price of the bar.
Low - Lowest price of the bar.
SMMA - smoothed moving average.