Alligator bites when it moves fast and is quiet and sleeping when it is resting. With Alligator Indicator for MT4 / MetaTrader 4 we can identify when we should sleep or when we should be active.
Alligator is MA (Moving Average) based Indicator. It works best on higher timeframes like 4h or Daily TF. You can use it on lower TF as well but it wont be so accurate. Alligator system was described by Bill Williams in his book.
Alligator is created with trhee SSMA Moving Averages with different periods and shifts. Alligator’s jaw is Blue line, Red is alligator teeth and Green is alligator lips. When all three lines are over each other (Twister together) then Alligator is resting / sleeping (for us this is quiet period and we should wait). When all three lines are more apart and not over each other then alligator is hunting and for us this means we should be buying or selling.
Alligator Indicator is an lagging indicator same as all Moving Average indicators. (LAG can help as an filter and can eliminate false signals).
When using Alligator Indicator you should combine it with Indicator such as CCI for example this will increase your chances for better results.
This are the available settings for Alligator Indicator:
- JawsPeriod: select period in SMMA Moving Average (blue line)
- JawsShift: select shift in SMMA Moving Average (blue line)
- TeethPeriod: select period in SMMA Moving Average (red line)
- TeethShift: select shift in SMMA Moving Average (red line)
- LipsPeriod: select period in SMMA Moving Average (green line)
- LipsShift: select shift in SMMA Moving Average (green line)
How to install Alligator Indicator in MetaTrader 4 / MT4:
- Download/Copy/Save the MQ4/EX4 file into your C:\Program Files\MetaTrader 4\experts\indicators folder (or change the folder to your installation sometimes forex broker name)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- On the left hand side, look for the “Navigator” window and under the “Common” tab, look into the “Custom Indicators” section
- Locate the indicator which you have just downloaded into the folder stated in Step 1
- Drag (Click and drag) the indicator onto the chart
- Choose your settings and click OK.
- TADA and your done!