Shows how far the Alligator's three smoothed lines are spread apart using two histograms, distinguishing the phase where the gator feeds (trend) from the phase where it sleeps (range). Bill Williams' oscillator measures not price itself but whether the crowd is moving in step.
The Gator Oscillator is a companion to Bill Williams' Alligator indicator.
The Alligator reads the market with three smoothed moving averages (SMMA) of differing periods and forward shifts. Named the Jaw, the Teeth, and the Lips, these three lines either spread apart or wind together. The Gator strips out only that spread or contraction and draws it as two histograms.
When the three lines are spread wide, the market has a clear direction. The gator has its mouth open, feeding. When the three are tangled and closed, the market has lost its bearing. The gator's mouth is shut and it is asleep.
The aim of the Gator is not to call price up or down. It is to tell at a glance whether the market is in a trend or sleeping in a range, the very phase the market is in.
How to Read
OANDA:EURUSD
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