Gator oscillator: Gator Oscillator Charts Help and Tutorials
When a phase of the trend is at its incipient stages, we will observe that the gator is waking, that is, one of the upper or lower bars will turn green. After that, as the trend accelerates and reaches its climax, we will note an increasing number of ‘double greens’ where both the upper and the lower bars are green. As the phase runs out of energy, and begins to slow down, one of the previously green bars will turn red, signalling that the gator is sated. And when both bars are red, the phase has ended, anticipating a new cycle.
Gator Oscillator is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines . The top bar chart is the absolute difference between the values of the blue and the red lines. The bottom bar chart is the absolute difference between the values of the red line and the green line, but with the minus sign, as the bar chart is drawn top-down. Not all color “signals” on the Gator Oscillator’s histogram have a reliable, and most importantly, unambiguous interpretation.
Gator Oscillator: the 4 Phases to Analyze Charts
According to the author the main goal of the indicator is to simplify the overall strategy’s performance and make its signals more understandable. One thing that is very useful with this indicator is that when the alligator enters the sated phase,it might be time to get out of the market. At the very least, it may be time to start moving your stop loss closer to the current price, as the momentum is starting to slow down.
4xdev company focuses on the development of various Forex tools (e.g., indicators, EAs, scripts, alerts) and conversion of ones into the needed format. With the help of the Gator Oscillator it is convenient to determine the prospects of the balance lines cross. In case we couldn’t get through, we will try again at the same time the next day. Alternatively, if the price is falling but the momentum is starting to go more positive, that typically means that you are going to see a bullish move sooner or later. When it comes to the speed we execute your trades, no expense is spared. Harness the market intelligence you need to build your trading strategies.
The top half of it can be looked for bearish divergence, while the bottom half can be used to try to find bullish divergence. In order to take advantage of the Gator Oscillator, you need to understand how to read these dual bars, as they give you different readings based upon the colors on both sides of the zero line. In order to simplify things, you can refer to this section when trying to use it. At this point, the dialogue box allows the trader to change colors, levels, and visualization, but the main parameters are going to be for the Jaws period, Teeth period, and the Lips period. When both the bar below and the one above the centerline are green, the indicator is said to be eating. The indicators is then evaluated on the basis of the emerging green or red patterns.
In order to interpret this indicator, we must define three states of the indicator bars. Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction. Due to current legal and regulatory requirements, United States citizens or residents are currently unable to open a trading office with us. Has plenty of features such as Lot/Risk Management, Filtering trades and Reverse Trading, Lifetime Support.
The Alligator Indicator is simply three simple moving averages in the 5, 9, and 13 variety shifted forward in order to smooth out the readings. We will conclude by repeating that the oscillator is suitable to trending markets. It is most harmonious with Fibonacci levels, or support/resistance lines due to its tendency to be volatile and unpredictable. The bars seen below the centerline in the chart above show the absolute difference between the red line and the green line with a minus sign.
In addition, you will receive 22 years of free historical data . In order to try the indicator performance alone or in the combination with other ones, you can use Forex Tester with the historical data that comes along with the program. After all the sides of the indicator were revealed, it is right the time for you to try either it will become your tool #1 for trading. Typically, in real strategies, this indicator is used by the active followers of Bill Williams, but necessarily it should be complimented with the other tools. In any case, when a potential entry point on Alligator indicator appears, you need to pay attention to the amplitude of the Gator Oscillator histogram. Of course, there is a traditional delay on the histogram, and therefore Gator Oscillator is not recommended as the main element of the trading strategy.
These are the three levels of smoothed moving averages that make up the indicator. With the Alligator Indicator, the idea is that the three moving averages need to spread out in a direction at the same time to show momentum. This indicator, the Gator Oscillator, expands on that foundation.
Gator Oscillator trading strategy
As you can see, this indicator is highly sensitive to trend, and as a result can tell you when it’s time to either be in or out of a trend. It’s also worth pointing out the fact that the measuring of the trend doesn’t necessarily suggest which direction that trend is in, just that it is moving. Remember, this oscillator essentially just measures the difference between the three moving averages that make up the Alligator Indicator. The main problem with this oscillator is its complicated nature. If you depend on moving averages in trading trends, the gator is a suitable tool for balancing and condensing your strategy. All the problems of trading with a moving average must be taken into account while a trader is making use of the Gator indicator.
Oscillators are some of the most useful indicators in the market. Some of the most popular oscillators in the market are the Stochastic oscillator, Relative Strength Index , Relative Vigor Indicator , and the Commodity Channel Index . Forex data can be compared to fuel and software that uses this data is like an engine. Respectively, min of the lower histogram indicates the maximum discrepancy of the “Lips” and “Teeth” lines. If the indicator oscillates near the zero level, it indicates the end of the current trend or its absence.
Fractal Chaos Oscillator (FCO)
When this happens, the difference between the two sets of the moving average tends to grow as well. At this point, the Gator Oscillator will show up in its own window at the bottom of the chart. There are green and red bars that appear, and a zero line where the indicator separates. The oscillator is different from many other oscillators as it’s actually two oscillators. The positive value for the oscillator is above the zero line while the negative value is below the zero line. It isn’t a normal histogram in the sense that it shows both positive and negative momentum.
If you make use of other tools, such as the MACD, and do not favor simple moving averages, theGator may not provide a lot of additional value. Sated phase – The sated phase means that the market is starting to slow down a bit, as the alligator is starting to get full, and therefore is sated. This is when you go from a couple of green bars above and below the zero line to a mix of colors again. At this point, the indicators tell you it may be time to take profit.
The bottom bar of the indicator represents the difference between the red teeth and the green lip line. The upper bars represent the difference between the blue jaw and the red teeth lines. The green line shows that the price rose while the red line shows that the price declined. The Gator Oscillator was designed in a bid to help traders identify the convergence and divergence of the balance lines. As a result, one can see when a market is trending or range-bound.
The indicator has been tested for several decades, therefore, it has a strong track record of use by professional traders. That being said, obviously they have a certain amount of expectancy popularity as they are included with the Metatrader platform. All things being equal, the Alligator seriesis a set of indicators that can be useful if you understand how they are printed. At the end of the day, everything is based upon moving averages, which over the longer term work really well with trends, but a lot of traders have trouble trusting just moving averages.
How to trade the Gator Oscillator
When this happens, they typically interpret it to mean that it is in the awakening phase. Therefore, as you can see, the Gator oscillator is based on the simple moving average. Still, some analysts have moved a step further and used other types of averages like the exponential, volume-weighted, smoothed, and weighted. The Gator Oscillator is considered as an auxiliary tool and is not usually used on its own. It has one main task − to filter the flat periods and show the moments of the Alligator’s lines crossing.
As a trend indicator itd is most useful in markets that display strong directional action. Eating Phase – The Gator oscillator can be in the eating phase. This happens when there are bullish or green bars on the two sides of the indicator.
As you can see, the indicator is in a consolidation phase when the stock is in a range-bound market. When this happens, it is relatively difficult to trade it because the distance between the levels is narrow. Sated Position – Finally, when one of the two sides turns red, it is a sign that a trend is in a deceleration mode. As such, this means that there is a possibility that the trend is decelerating, which leads to a reversal. Sleeping Mode – When the blue and red line are hovering near the neutral line, they say that it is in a sleeping mode. In this period, the indicator usually show little or no movements.
When both bars above and below the centerline are red, the gator is sleeping. One of the best ways to trade in this condition is to wait for the Gator Oscillator to start widening as shown in blue. This pattern simply means that the number of bulls is more than bears. A good example of the Gator Oscillator is shown in the AMD stock shown below.
