Market movements are very intermissive, i.e., it’s stable most of time and the traders are making value only of the changes and rates jumps and falls.
Technical indicator Alligator combines mixture of the moving averages, using fractal geometry and nonlinear dynamics.
Blue line (Alligator’s jaw) – 13-degree modified moving average, replaced 8 bars ahead in the future.
Red line (Alligator’s teeth) - 8-degree modified moving average, replaced 5 bars ahead in the future.
Green line (Alligator’s lips) - 5-degree modified moving average, replaced 3 bars ahead in the future.
Alligator’s jaw, teeth and lips define correlation of different periods of rates changes. When all of the three lines are bound, the alligator’s relaxing. Like an animal, it’s getting hungry. Later the alligator will open his mouth and starts hunting a bull or a bear. Once the alligator is not hungry any more, the balance lines are bound once again.
