My teacher advised me to make the trend my friend, so we look for the trend before opening the trade; we need quick and easy tools like moving averages, super trend, and there is also

The William's Alligator indicator is found within the tradingview indicators library on BinSance, it is a technical analysis tool created by Bill Williams, and is used to determine market trends through a combination of three Smoothed Moving Averages of different lengths. The indicator resembles an alligator's mouth, where it is said that the alligator is 'sleeping' when the lines are intertwined, and 'awake' when they start to diverge.

Components of the indicator:


Jaw Line โ€“ Blue Line:

    • Smoothed Moving Average with a period of 13, shifted forward by 8 candles.

  2. Teeth Line โ€“ Red Line:

    • Smoothed Moving Average with a period of 8, shifted forward by 5 candles.

  3. Lips Line โ€“ Green Line:


    • Smoothed Moving Average with a period of 5, shifted forward by 3 candles.

How does the indicator work?

  • When the lines are intertwined or very close to each other, the market is in a state of non-trend (Consolidation), meaning the 'alligator is asleep'.

  • When the lines begin to diverge (green crosses red, and red crosses blue), this is a signal for the beginning of a new trend, meaning the 'alligator wakes up and starts hunting'.

  • The greater the divergence between the lines, the stronger the trend.

How to use it in trading?


Entering the trade:

    • If the green line (lips) is above the red (teeth) and above the blue (jaw) โ†’ Buy signal (the market is bullish).

    • If the green line is below the red, and the red is below the blue โ†’ Sell signal (the market is bearish).

  2. Exiting the trade:

    • When the lines begin to curl towards each other, this can be an indicator of trend weakness and the beginning of a correction or reversal.

Examples of usage:

  • It can be combined with other indicators like MACD and ADX Super Trend to confirm the trend.

  • It is commonly used with trend strategies as it helps to know when a strong trend begins.

Are you thinking of integrating it with your strategy?

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