Gator Oscillator: Definition, Uses, Four phases and Strategy

A good example of the Gator Oscillator is shown in the AMD stock shown below. 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. 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 . You may want to test the environment with virtual money with a Demo account.

A Bollinger Band® is a momentum indicator used in technical analysis that depicts two standard deviations above and below a simple moving average. A moving average is a technical analysis indicator that helps level price action by filtering out the noise from random price fluctuations. Graphically, the gator oscillator is displayed as two interconnected histograms whose columns are colored green if the previous column is larger than the current and red if less. The Gator Oscillator uses the convergence and divergence of the three balance lines from the Alligator Indicator to help you identify new trends.

gator oscillator

The idea is to open a trade when the oscillator is in the Awakening phase. Keep the position open during the Eating phase and exit the transaction when the Sated phase begins because this means the trend will end soon. We know the trend begins to form when one of the bars, which were previously red, becomes green. If you are looking to trade forex online, you will need an account with a forex broker. If you are looking for some inspiration, please feel free to browse my best forex brokers. I have spent many years testing and reviewing forex brokers.

Gator Oscillator Indicator

Gator eats – green bars on both sides of the signal line. Most forex traders are trend traders and follow the trend using… Forex day trading is the most popular method of retail forex… The core of the technical analysis is to identify the trend…

The main advantage of the Gator indicator is the compactness of its display. When, after an ‘eating’ phase, the one of the upper or lower bars around the centerline turn red, the Gator is said to be sated. Traders have many assets to choose from on the Olymp Forex Broker Review Trade platform. Exchanging currencies is one of the very popular options. In fact, foreign exchange is the largest market of all. Supporting documentation for any claims, comparison, statistics, or other technical data will be supplied upon request.

Binary options are prohibited in the European Economic Area.79 % of retail investor accounts lose money when trading CFDs. It uses three moving averages, set at five, eight, and 13 periods. The three moving averages comprise the Jaw, Teeth, and Lips of the Alligator. 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. The upper bars, on the other hand, depict the difference between the blue and the red lines.

  • Notice that the Gator Oscillator shows only the presence of a trend and not its direction.
  • The most popular trend-following indicators are moving average and the Bollinger Bands.
  • As mentioned earlier, when you see the eating phase, you let your trades run, as there is a strong chance of trend continuation.
  • A good example of the Gator Oscillator is shown in the AMD stock shown below.
  • The Gator oscillator can be successfully applied in all market conditions however, the best results you will get on medium to longer timeframes.

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. It’s almost impossible to trade with just moving averages, as most people will add some other indicators such as a different oscillator or Fibonacci retracement levels, or something else. Bill Williams’ Alligator indicator provides a useful visual tool for trend recognition and trade entry timing, but it has limited usefulness during choppy and trendless periods. Market players can confirm buy or sell signals with a moving average convergence divergence or another trend identification indicator.

For the Gator oscillator strategy, it’s better to apply the Alligator indicator. Gator uses the convergence/divergence of the three lines from the Alligator indicator to highlight the market trend. If the red line of the reducedlagma.ex4 custom indicator intersects the magenta DEMA custom indicator line top downward as seen on Fig. Not all brokers and offers are regulated in the United States of America. We don’t recommend, facilitate or encourage trading with products that are not regulated. does not recommend any forex, crypto and binary brokers or exchanges to US traders besides NADEX, which is licensed by CFTC.

You can trade the signals if you understand they good with 50 Lot and More if Possible , because the signals are accurate 99.99%. Millionairs will be made only with this system in a short time. The Gator system is one of the most strongest and Secret Systems between Professional wall street and Bank Traders. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.

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In other words, the moving averages on the Alligator Indicator would be spread wide open, and in a nice trending slope. The Trading With Plus500 was developed by Bill Williams and is related to the Alligator Indicator. It plots the level of divergence between the 3 alligator lines in 2 separate histograms. The histogram above the baseline shows the divergence between the blue and red line while the histogram below the baseline shows the divergence between the red and green line. Due to its simplicity, the oscillator can be combined with the Alligator to form a standalone indicator or together they can be used in combination with other analysis techniques.

gator oscillator

That in and of itself is a very useful feature of this indicator, and it can keep you in more profits if you get out before the trouble starts. CFDs are complex instruments and entail a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.

Sated Phase

To apply a GATOR oscillator to a chart, a trader needs to follow the procedure common to all Marketscope indicators. For more information, see the Add Indicator article. The name Gator is a metaphor used by the author because he saw a lot of similarity in the oscillator’s behavior on the chart and a gator in the wilds. In the article, we will keep the author’s metaphoric terminology. We have also looked some of the top strategies to use when using the indicator.

gator oscillator

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. That being said, there are a variety of ways to read these oscillators in order to discern what type of market the currency pair is in.

The Alligator indicator uses three smoothed moving averages, set at five, eight, and 13 periods, which are all Fibonacci numbers. The initial smoothed average is calculated with a simple moving average, adding additional smoothed averages that slow down indicator turns. The Williams Alligator indicator is a technical analysis tool that uses smoothed moving averages.

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Some people are confused about letting your trades open with the Gator. Remember that when the indicator shows green bars above and below the zero line, it marks an eating phase. Gator-oscillator is a mt4 indicator and it can be used with any forex trading systems / strategies for additional confirmation of trading entries or exits. In case the potential client does not understand the risks involved, he/she should seek advice or consultation from an independent advisor. If the potential client still does not understand the risks involved in trading in any financial instruments, he/she should not trade at all. Potential clients without sufficient knowledge should seek individual advice from an authorized source.

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 What is Currency ETF and how it works making use of the Gator indicator. 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. On this chart, the upper section shows the price action, while the lower part is the Gator indicator.

Once you are ready, enter the real market and trade to succeed. It is essential to have an understanding of what the color combination of bars in the oscillator mean, as each variety has a different message. Identify the market trend with the help of the Alligator indicator.

The alligator can be sleeping, awakening, eating, or sated. When the alligator is sleeping, that means that there is no trend in the market. When the alligator is awakening, it is starting to form a trend. When it is eating, it is continuing the trend, and when it’s sated, that means that it is slowing down, perhaps suggesting a lack of momentum. The Gator Oscillator is typically used in conjunction with the Alligator Indicator, as a secondary indicator. 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.

The Double Exponential Moving Average was designed by Patrick Mulloy as a tool to better respond to changes in the market than the usual moving averages. The Reducedlagma and DEMA indicator are trend seeking tools while the Gator Oscillator is a technical indicator that pinpoints strong directional price action. However, even high/low options can be traded but only using a separate oscillator and looking for divergences or bullish or bearish reversal patterns in oversold or overbought territory. After the indicator is plotted on the screen it can be seen that it is travelling between negative and positive values and the zero level is implicitly shown. The candles on the oscillator have different values and one candle can be half green and half red, or just a plain color. Swing high is a technical analysis term that refers to price or indicator peak.