Alligator Indicator is one of the most popular family members of trend indicators. This Indicator was developed by Bill Williams. You can practice this indicator at the Olymp Trade demo and real account.
Starting with Alligator Indicator at Olymp Trade
You can start with the indicator at both Olymp Trade real and demo account. the first thing you need to do is log in to your account. and click the indicator box => Next click on the popular tab => Search and select Williams alligator from the list.
Alligator indicator is a trend indicator, which helps the traders to predict possible upcoming trends or reversals. This indicator was developed by one of the greatest traders and analysts Bill Williams in 1995. He developed this indicator after years of research and development. According, to his research he found that the market works exactly like an Alligator. If you know a little about this beast. An Alligator spends 70% of his time in sleeping and the rest 30% of the time he is awake.
How to read Alligator Indicator
The indicator is made from three simple moving average lines Jaw, teeth, lips. Here, The Jaw is a blue line made from 13 SMA and 8 bar. The teeth is a red line made from 8 SMA and 5 bars. Last is the lips which is a green colour made from 5 SMA and 3 bars. Here, the lips is the fastest line and the Jaw is the slowest one. These three lines ribbons around the price that create buy and sell signals.
Identifying the bearish trend
When the three intersect each other and you find the blue followed by the red line and then the green line. This is the ideal scenario for a downtrend. This trend will be considered even stronger if there is a big gap between these lines.
Identifying the bullish trend
When the three lines intersect each other and you find the green line at the top following the red line and the blue line is the ideal scenario for a bearish trend. You can bid even stronger if there is a big gap between these three lines.
You have just learned the Alligator indicator by now you have understood how easy it is to trade with this indicator and how powerful this indicator is. You can use a trend confirmator for better results. I would highly suggest you to combine this indicator with other indicators for trend confirmation at the Olymp Trade demo account and check how the combination works. If you are facing any issues in finding the right confirmator indicator do comment or contact me. I will help you. Till then best and I wish you a successful career 🙂