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The Alligator indicator is one of the most widely used technical analysis indicators in the financial market. this indicator was developed by one of the most prominent names in the field of trading Bill Williams. In this blog, we will explore everything about the Alligator indicator and how it can be used on the Expert Option trading platform

What is Alligator Indicator?

The Alligator indicator is a trend indicator that helps us to identify the upcoming trends and reversals of security using a three-moving average lines name Teeth, Jaw, and Lips.

As you can understand from the name this indicator was inspired by an Alligator. Bill Williams developed this indicator in 1995. After years of research and experiments, he found that the market works exactly like an Alligator. Just like an Alligator, the market spends most of its time sleeping and the rest 20% to 30% of the time the market is active just like an Alligator.

Alligator Indicator lines

As said above, the Alligator indicator is made from the composition of three moving averages average lines

Jaw: The Jaw is the red line that starts with 13 periods moving average and is smoothed by 8-period bars.

Teeth: The teeth  is the blue line that starts with 8 period moving average and is smoothed by

5-period bars.

Lips: The lips is a purple line that starts with 5 period moving average and is smoothed by 3-period bars.

These three moving average lines oscillate around the price. and the moment they intersect each other they generate buy and sell opportunities.

How to Configure Alligator Indicator on Expert Option?

Setting up Aligator Indicator in the Expert Option is very simple and easy. Firstly you need to open your Expert Option trading account In case, you don’t have a trading account click here. After you login into your account, you will directly land on the dashboard of the Expert Option, then click on the indicator button and search for the indicator. You will see the Alligator indicator button at the very top of the list. After you click on the indicator button a new dialog box will open. Here you can set the indicator as per your requirements. once you are done click apply.

How to trade with Aligator Indicator?

Trading with the Alligator indicator is very easy. As I said above when the three moving averages lines intersects each other it generates buy and sell opportunities for a trader.

Place buy trade when:

• When all the three lines are at the same distance parallel to each other.
• The price or the candle intersects above the three moving average lines.
• Lastly, the three lines intersect each other and the Teeth or the purple line is at the top. It signals a strong bullish trend and it is the best time to place a buy trade.

Place sell trade when:

• Similarly, When all three lines are at the same distance parallel to each other.
• The price intersects below the three moving average lines.
• Lastly, the three moving average lines intersect each other and the purple line or teeth line is below all. It signals a bearish trend and is the best time to place a sell trade.

Summary

The Alligator Indicator is one of the most popular trading tools via this indicator you can easily find the upcoming trends and reversals. This indicator is made from the composition of three moving average lines Teeth, Jaw, and Lips. when these three moving average lines intersect each other it generates buy and sell opportunities.

So, this is the end of this article. I hope you have understood the concept of the Alligator indicator. I will highly, suggest you try this indicator on the Expert Option demo account and shift to real account once you are confident enough.

I wish you the best of luck 😉