Alligator Indicator In Share Market trading
Williams Alligator Indicator:
Most used strategy by professional traders specifically for intraday traders, used in chart analysis. Lets discuss this tool in detail.
MHV EDUCATION, offers the Best Stock Market Courses in Dehradun, which covers all these tools helping you to make precise decisions while trading the share market. Here, we will explore how this indicator can be used effectively and how you can learn to apply it in real-time.
📈 Williams Alligator Indicator
Developed by legendary trader Bill Williams, the Alligator Indicator is a combination of three smoothed moving averages which represent the behaviour of an alligator helping to predict market trends :
Jaw (Blue Line) — 13-period SMMA shifted 8 bars into the future
Teeth (Red Line) — 8-period SMMA shifted 5 bars into the future
Lips (Green Line) — 5-period SMMA shifted 3 bars into the future
These lines represent the behavior of an alligator which is a metaphor for market trends. When the three lines are very close to each other, the alligator is sleeping, indicating a consolidating or sideways market. When they spread apart and move in a particular direction, the alligator is awake and ready to make a new trend or continue the existing one.
🔍 Using the Alligator Indicator
At MHV Education, the Best stock market Institute in Dehradun, we teach our students how to use the Alligator indicator to:
1. Identify Market Trends
When the lips cross over the teeth and jaw, it signals that a new trend is about to begin and a trader should be actively watching the markets.
A bullish trend begins when the green line is above the red and blue.
A bearish trend forms when the green is below the red and blue.
2. Avoid Ranging Markets
When the lines are close or twisted, the alligator is “sleeping,” and traders should avoid entering trades.
This prevents getting trapped in false breakouts or sideways movements.
3. Confirm Trade Entries
The Alligator indicator works well when paired with other tools like RSI or MACD.
Always use this tool if you really want to be an efficient Intraday trader.
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