This daily chart of Walt Disney shows a wide trading range in which we observed several unreliable Alligator signals. This is a daily chart of Microsoft, which shows a nice swing trade after the Alligator opened its mouth. Bugner will be remembered as one of Britain’s best heavyweight contenders never to win the world title.
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Today, we will dive into a strategy that trades with the Bill Williams Fractal Indicator/ Bill Williams Alligator. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success. In this post, you will learn what Alligator indicator is, how it works, how to use it in your trading, and the tools you can combine with it for a better result. The name of the indicator is a metaphor that uses the behavior of an alligator to explain the behavior of the indicator in different situations of the market.
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When the three EMA lines converge very closely together, with the Lips (Green) on top, this indicates a range-bound market. The Alligator’s mouth is closed as it rests before the next trending period. Basically, the Alligator is a multiple displaced moving average system. I find this trading method similar to the moving average fake-out by Mark Fisher which also uses three moving averages.
Joe Bugner dies aged 75: Tributes to former heavyweight boxing champion and two-time Muhammad Ali challenger
The 23-year-old Bugner then lost twelve-round decisions to Muhammad Ali and Joe Frazier.4 Despite being clearly defeated, Bugner fought well and won the respect of the boxing media and the public alike. After being knocked down by a tremendous left hook in the tenth round, Bugner arose and staggered Frazier to close the round. Frazier took the decision, but only narrowly, and arguably only George Foreman and Muhammad Ali ever gave Frazier a harder fight.
Book profit once momentum shifts downward as seen by the converging EMA lines. When the three EMA lines are separated with the Lips (Green) on bottom, Teeth (Red) in middle, and Jaw (Blue) on top, this signals a strong uptrend. The Alligator’s mouth is open wide, ready to continue devouring prey. These three balance lines are essentially EMAs (Exponential Moving Averages) shifted into the future and then smoothed. When plotted on a chart, they appear as three twisting lines resembling the mouth of an alligator waiting to devour its prey. In this comprehensive guide, we will cover everything you need to know about the Alligator indicator – how it is constructed, how to interpret the signals, when to use it, and effective trading strategies.
- In testing the alligator indicator, I have found that hunting hand inhand with the alligator works better than all the other moving averagecrossover systems I have used.
- Outside of the ring, Bugner appeared in films including the 1994 film Street Fighter and worked as an adviser for the 2005 Hollywood blockbuster Cinderella Man.
- Bugner and his relatives eventually settled in the Cambridgeshire market town of St Ives.
- In the above example, you wouldstay in the trade until a Candle closed above the middle Red line.
- Combining the Alligator with pure price action techniques and other indicators helps overcome these limitations.
Wait for the Alligator Teeth (red line ) to cross below the Jaw (blue line). 1Wait for the Alligator Lip (green line) to cross below the Jaw (blue line). Wait for the Alligator Teeth (red line ) to cross above the Jaw (blue line).
Alligator Lips (Green)
Thedirection and target of the signals are derived from the lag by the longest ofthree time frames in this trading system. Such a lag ingetting a trade signal leads to a partial loss of profit. Further, this lagfunctions as a filter and helps eliminate alligator indicator trading system insignificant and false signals. The Alligator Indicator Strategy is a trading strategy that uses the Alligator Indicator, a technical analysis tool, to identify potential market trends and guide trading decisions. Alligator indicator is a trend-following indicator that consists of three moving average lines of 5, 8, and 13 periods, displaced into the future by 3,5, and 8 periods respectively. Pullbacks are price correction in a trend often induced by profit taking.
- These are only two of a total of 5 indicators that Bill Williams developed.
- Whether you are a novice trader looking to learn or an experienced trader hoping to sharpen your skills, read on to unlock the power of this “reptilian” indicator.
- Outside of boxing, Bugner appeared in films including the 1994 action movie Street Fighter and worked as a boxing adviser for the Russell Crowe film Cinderella Man.
- In an uptrend, look for trade setups where the indicator and a support level meet, but in a downtrend, look for setups where the indicator lines and a resistance level meet.
Bill Williams used the different parts of an alligator’s mouth to describe the three moving averages. As one of the few indicators that use a multiple moving average strategy, the component moving average lines have specific default colors to ensure clarity. Learning to interpret the signals takes practice, but the visual patterns are intuitive compared to more opaque indicators. Combining with pure price action context and other indicators provides reliable confirmation. The Alligator was designed specifically for trend trading, an essential component of forex trading. While other indicators have strengths in momentum, volatility, or reversals, the Alligator stands out in its balance of trend identification and filtration.
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Bugner retired again but returned nearly eight years later to capture the Australian heavyweight title in 1995. Check out my other article here that talks about these important areas. This most likely means the alligator is going back to sleep and the price action will either head the other way or consolidate. Once you see that five consecutive candles did not make a drastic move to the downside and stay in between the high of the fractal candle and the alligator teeth, then we go ahead and make an entry order.
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The green line crossing the other two moving averages and chasing the price is one of the indications that the Alligator is waking up and getting ready to feed. So, when the three moving averages in the indicator are intertwined, the market is said to be sleeping. Of course, the longer the beast sleeps, the hungrier it will be when it wakes up.
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With the lips and the teeth separating from the jaw, the Alligator has completely opened the jaw and started feeding. However, where you find it depends on the charting platform you’re using. If you’re using Tradingview, simply go to the ‘indicator & strategy’ section and search for Alligator indicator. Alligator indicator is a trend-following indicator that was first described by Bill Williams in his book called Trading Chaos. Bill Williams likes to use colorful names for his indicators rather than the dry technical names — such as the RSI, ATR, and Stochastic — used by his counterpart.
The Alligator Indicator Strategy is an exceptional trading methodology introduced by the legendary trader Bill Williams, who also created the fractal indicator. This comprehensive guide will enlighten you on how to leverage this powerful trading tool, enabling you to significantly boost your trading performance. For a downtrend, a bearish color of the AC bars after a pullback to the alligator lines is a signal to go short.
Since the Alligator indicator can show when a trend is forming, you can use it to trade a breakout strategy. A ranging market is one in which the price swings up and down without making a significant displacement to the upside or downside — the market simply moves sideways. There are many trading strategies you can formulate with this trend indicator.
Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.
Following the BBBoC’s announcement, tributes poured in from across the boxing community. The board itself acknowledged his impact on British boxing, while Frank Warren hailed him as a man of ‘immense courage’ whose career was marked by toughness and skill. Joe Bugner, the British boxing great who shared the ring with Muhammad Ali and Joe Frazier, has died aged 75. The former heavyweight champion, long regarded as one of the sport’s toughest men, passed away in a Brisbane care home, the British Boxing Board of Control confirmed in a statement earlier today.