Alligator-Indicator for MetaTrader 5
The Alligator technical indicator is a variant of the Balance lines (Moving averages) that uses fractal geometry and non-linear dynamics (b. Williams: "New Trading Dimensions: How to Profit from Chaos in stocks, bonds and commodities").
The Blue Line (Alligator's jaw) is the timeline balance line that is used to construct the chart (smoothed moving average of 13 periods displaced to the future 8 bars);
The Red Line (alligator teeth) is the time frame balance line A lower level (smoothed moving average of 8 periods displaced to the future 5 bars);
The Green Line (Alligator's lips) is the time frame balance line a lower level (5-period smoothed moving average shifted to the future 3 bars).
The Alligator's lips, teeth, and jaw show the interaction of different time periods. Because well-defined trends are only 15-30 percent of the time, it is very important to follow and refrain from working in markets that only fluctuate in certain periods.
When the alligator's jaw, teeth and lips are closed, it means he's going to sleep, or he's already sleeping. As he sleeps he is having more and more hunger (the longer you sleep, the more hungry you will get when you wake). So the first thing you do when you wake up is to open your mouth and yawn. Then the smell of food comes to the alligator's nose (beef or bear meat), and this begins the hunt. After having eaten enough to feel very crowded, the Alligator begins to lose interest in the food/price (the Balance lines come together). This is the time to prepare the winnings.
Calculation:
Median PRICE = (HIGH + LOW)/2
ALLIGATOR'S JAW = SMMA (median PRICE, 13, 8)
ALLIGATOR'S TEETH = SMMA (median PRICE, 8, 5)
ALLIGATOR'S LIPS = SMMA (median PRICE, 5, 3)
where:
Median price-average price;
Higher high-price of bar;
Lower bar low price;
SMMA (A, B, C)-smoothed moving average. Parameter A is to soften the data, B is the smoothing period, and C is the shift to the future. For example, SMMA (median price, 5, 3) means that the smoothed moving average is calculated on the average price, the softening period is equal to 5 bars, and the offset is 3;
Alligators Jaw-alligator jaw (blue line);
Alligators Teeth-alligator tooth (red line);
Alligators Lips-alligator lip (green Line).
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