What is Alligator Indicator
Bill Williams introduced the Alligator indicator almost three decades ago in 1995. But it is still a very popular indicator in trading circles.
It consists of three lines, overlaid on a pricing chart, that represent the jaw, the teeth and the lips of the alligator. This indicator was created to help traders to confirm the presence of a trend and its direction.
Legendary trader Bill Williams, an early pioneer of market psychology, developed the trend-following Alligator indicator, which assumes that financial markets and individual securities trend just 15% to 30% of the time while grinding through sideways ranges the other 70% to 85% of the time.
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