|Welcome to currency trading with Profiforex!
They are "Momentum" and "Alligator."
To apply Alligator to the chart, press the "Indicators" button on the toolbar and choose "Bill Williams" - "Alligator."
We won't change the settings of this indicator.
Alligator is a combination of three balance lines:
Alligator's Jaw (the blue line) — 13-period moving average, moved into the future by 8 bars;
Alligator's Teeth (the red line) — 8-period moving average, moved into the future by 5 bars;
Alligator's Lips (the green line) — 5-period moving average, moved into the future by 2 bars.
The Alligator indicator helps to identify the direction of the existing trend or to determine that there is no trend. If all three lines are intertwined, the alligator is "asleep."
During this time the currency pair is traded within a tight price range, taking away traders' profit made on the previous trend movement. The longer the Alligator sleeps, the hungrier it gets and the stronger the subsequent price movement will be.
When the alligator is asleep, don't open any orders.
Once the alligator wakes up, it opens its mouth (the balance lines diverge) and starts hunting.
Having eaten enough, it goes to sleep again (the balance lines converge).
If the Alligator isn't asleep, the market is either bullish or bearish (the victim runs away from the alligator):
If the price is above the alligator's mouth, there is a bullish trend; If the price is below the alligator's mouth, there's a bearish trend.
One more useful Alligator's function is its help in identification of Elliott waves. If the price is outside the Alligators jaws, the impuls wave is being formed by the market;
while if the price is within the jaws, then there is the correction wave.
The Gator Oscillator was created in order to simplify trading using Alligator. In order to impose the Gator Oscillator on the chart press "Indicators" button on the toolbar and choose "Bill Williams" - "Gator Oscillator".
We won't change the settings of the indicator.
Gator Oscillator shows the degree of convergence/divergence of the Balance Lines and is represented as two histogramms: the histogram above zero shows the distance between the blue and the red lines (between the Alligator's jaw and teeth);
The histogram below zero shows the distance between the red and the green lines (between the Alligator's teeth and lips).
All the bars of each histogram are coloured in green and red colours: The bar is colored red if its value is lower than the value of the previous bar;
The bar is colored green if its value is higher than the value of the previous bar.
The main goal of Gator Oscillator is to help visually determining the presence or absence of a trend. With its help the periods of convergence and intertwining of the Balance Lines are clearly visible - the periods of Alligator's sleep