Building Alligator Indicator Signals for Trend Trading
Summary
The article explains the Alligator indicator as three shifted smoothed moving averages calculated from median price: the Jaw, Teeth, and Lips. It presents the indicator as a way to distinguish trending from sideways conditions and explains reading bullish or bearish alignment from the relative positions of its lines. It then outlines three signal designs: ordered alignment of all three lines, Lips crossing above or below the other lines, and a price crossing the Teeth after a specified line arrangement.
The author turns these rules into MetaTrader trading-system blueprints and signal-generating implementations. The article focuses on indicator calculations, rule definitions, and coding rather than measured strategy performance. It provides no empirical results establishing profitability, and it advises readers to test and adapt the rules before live use. The signals are educational examples whose behavior may vary by instrument, timeframe, and implementation choices.
Key ideas
- The Alligator combines three shifted smoothed moving averages of median price with different periods.
- A bullish or bearish trend state can be defined by the ordered relationship among Lips, Teeth, and Jaw.
- Simpler entry rules use Lips relative to the other lines, while an alternative adds a close crossing the Teeth.
- The article translates these conditions into automated indicator-based signals in MetaTrader.
- The proposed rules are educational and are not supported by performance tests demonstrating profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.