Oscillators such as the oscillator & Alligator oscillator can be widely used during trading. With these indicators, you can easily identify trends and wide-ranging markets. Likewise, if you set a definite time frame, you can easily see even smaller trends from larger trends generated by oscillators. In order to effectively use the oscillator for any trading purpose you intend to carry out, it is imperative to leverage your experience and creativity. Without these, there is hardly any difference in any oscillator.

You may have heard of the Alligator Oscillator. This oscillator is built on the assumption that each upcoming trend and the mini-trends derived from each trend are composed of distinct waves that may overlap starts, growths, peaks and stops. This is consistent with the principles conveyed by the wave theory created by Elliot. The Alligator is almost identical to the Alligator Oscillator. If a full understanding of the Alligator indicator is required, its four different stages should be identified:

• Alligator wakes up: This happens when the black or green line is below or above the blue line. Simply put, it happens when alligator teeth are lower or higher than the jaw. This happened after a contracted schedule. This is similar to the Alligator’s awakening as it is the beginning of a trend.
• Alligator Eats: This is the phase or period in which a derived trend or microtrend can be well identified. The crocodile’s teeth can be seen breaking off its lips. It is compared to eating alligator skins simply because it is assumed that the trend is about to reach or peak.
• Alligator Satisfied: Here you can see the alligator’s teeth moving backwards under the blue line. Also, all three lines seem to produce smaller angles and shrink to smaller areas. Here, the influence of price on the trend has diminished, and the trend is said to have gone.
• Alligator is sleeping: This is the convergence point in the line representing the moving average. In a more interesting demonstration, say the alligator’s mouth begins to close and the lips, jaws, and teeth meet to a point. This shows that the trend and all the mini-trends that come with it have finally reached a point of exhaustion. For traders, this is a time to reflect on the strategies employed.

Indeed, the Alligator Oscillator is one of the most interesting indicators due to the richness of language that comes with it. In terms of reliability, this is also trustworthy. Therefore, any novice trader should spend some time researching this type of oscillator.

Alligator Oscillator: Introduction

In theory, oscillators like the Alligator Oscillator are a set of mathematical indicators that have an innate ability to isolate and distill large ranges of price action into data that has practical implications for traders. There was a period in trading history when traders had difficulty identifying low or high prices in the course of their participation in the market. Even if there is a very clear personal mindset regarding the lows or highs of the average trader, the chaotic, sensitive and volatile nature of the trading environment prevents anyone from drawing definite conclusions.

Therefore, it can be said that the generation of oscillators is a direct result of high prices that traders recognize, not to mention that high prices and low prices do not adequately serve as their guide during the trading process. These cannot determine what constitutes extreme market value.

Alligator Oscillator Explained

There are many different types of oscillators to choose from depending on the trader’s choice or preference. They come under different names, and each has a unique purpose and reason to be backed up. Each creator of oscillators has a unique vision and predetermines the characteristics of the oscillators, the possible uses of the oscillators, and the specific group of oscillators. Alligator oscillators are one of the most popular types.

Before generalizing to any particular type, it is necessary to explain what an oscillator actually means in a general sense. Each oscillator can be grouped according to its price sensitivity.

• Many people are very sensitive and easily react to any price action. A great example is the Williams Oscillator, which most accurately reflects any market movement. However, in the default settings, the lines representing movement are not refined so that the average trader can easily use trend lines.
• On the other hand, some oscillators are less sensitive and less volatile. One such example is the RSI oscillator, which is more accurate in terms of signals and does not readily react to any price action.
• Finally, some oscillators can only give extreme values ​​to indicate different overbought or oversold levels. Signals are generated through divergence and convergence phenomena.

One With these simple instructions, it will be easier for you to understand the Alligator Oscillator. According to trading experts, the market will naturally remain in a certain state for a period of time. There are only extremely short periods of time (about 15% to 30% of the time) when the market becomes volatile enough to create a trend. This is when traders refer to trends, especially when they are not there when the market changes.

In principle, the Alligator Oscillator is created based on the concept of a moving average or balance line, which is analyzed using nonlinear dynamics and fractal geometry When analyzing graphs, it may be helpful to refer to the following:

• The jaws of an alligator are usually indicated by a blue line. The balance line traces back to the time period used to create the chart. It is a smooth moving average chart consisting of 13 periods, usually shifted by exactly 8 bars.
• Alligator teeth are usually written with red lines. This is the balance line, which is related to the price timeframe of the level, which is one notch lower. It is a smoothed moving average chart consisting of 8 periods, usually shifted by exactly 5 bars.
• Alligator lips are usually indicated by a green line. The balance line represents the time frame value of one level is lower than the time frame value of another level. It is a smoothed moving average chart consisting of 5 periods, usually moving back 3 bars.

The Alligator Oscillator utilizes the alligator’s jaw, teeth and lips to represent the movements and interactions between the aforementioned time periods. In terms of reliability, the alligator indicator can be considered a very reliable reference point. However, traders should proceed with caution as some markets do not move according to the trend predicted by this oscillator.