Williams Alligator

Name Type Prerequisite Use Cases
Williams Alligator (ALLI) Trend/Regime SMA Identifying "sleep" (range) and "hunger" (trend) phases.

Definition

The Williams Alligator indicator uses three smoothed moving averages, set at specific periods and offsets, to identify trends. The lines are metaphorical:

  • Jaw (Blue): 13-period SMMA, shifted 8 bars into future.

  • Teeth (Red): 8-period SMMA, shifted 5 bars.

  • Lips (Green): 5-period SMMA, shifted 3 bars.

Special cases

  • Maximum possible value: Unbounded
  • Minimum possible value: 0
  • Behavior: Follows the price using three displaced smoothed moving averages.

Visualization

Williams Alligator

Trading Significance

  1. Sleeping: When lines are intertwined, the market is range-bound (Alligator is sleeping).

  2. Awakening: When lines separate, a trend is beginning (Alligator is feeding).

  3. Trend Direction:

    • Uptrend: Green > Red > Blue.

    • Downtrend: Blue > Red > Green.