Alligator / Gator Oscillator |
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Alligator and Gator Oscillator are transformation of moving averages. Three lines of Alligator:
- The blue line (Alligator’s Jaw) is 13 period SMA shifted right by 8 periods.
- The red line (Alligator’s Teeth) is 8 period SMA shifted right by 5 periods
- The green line (Alligator’s Lips) is 5 period SMA shifted right by 3 periods.
The Alligator is three lines of moving averages. Cross and convergence/divergence rules apply to Alligator as well.
Gator Oscillator calculates the difference between the three lines of the Alligator.
- The top part of Gator is the absolute difference value of the blue line and red line
- The bottom part is the absolute difference value between the red line and green line with the minus sign.
If the difference of the bars on the chart is large, the divergence is underway. And it is possible to see the reversal of price. If the difference of the bars on the chart is small, it just means that the short term and long term moving averages are converging. There may be a trend market condition.
Parameters
| PARAMETER | DESCRIPTION |
| First period: | n periods of SMA to calculate the blue line |
| Second period: | n periods of SMA to calculate the red line |
| Third period: | n periods of SMA to calculate the green line |
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