1) Trader Level - Beginner
2) Strategy type - Trend
3) Timeframe - 1m - 5m
4) Assets for trading - Any
Technical indicators are tools for analyzing the dynamics of asset price movement, building indicator trading systems and receiving trading signals for trading.
The Alligator indicator is a technical indicator developed by the world famous trader Bill Williams. The Alligator is represented by three moving averages, which more clearly demonstrate the change in the dynamics of the movement of quotations.
Applying the Alligator to the quotes chart, a trader can analyze not only the general direction of the asset's quotes, but also changes in its short-term trend, which is demonstrated by the mutual intersections of the moving averages used in the indicator:
By adjusting the Alligator indicator, a trader, as with setting the Moving Average, can specify the number of candles that will be taken to calculate the average price (for each of the three indicator lines), and the time shift for each average. In the indicator "Alligator" (due to its exotic name), each line has its own name: "Jaws", "Lips" and "Teeth".