Bill Williams indicators
Gator Oscillator
Shows the Alligator's mood as bars: how far apart its three lines are, above and below a zero line.
The idea in plain words
When the Alligator's lines spread apart, a trend is under way; when they come together, the market rests. Gator draws those distances as bars so the phases are easy to see.
How it is calculated
Upper bars: the distance between Jaw and Teeth. Lower bars: the distance between Teeth and Lips (drawn below zero). Green when a bar grows, red when it shrinks.
Upper = |Jaw − Teeth|
Lower = −|Teeth − Lips|How to use it
- Red bars on both sides: sleeping (no trend). Green on both: eating (strong trend).
- Mixed colours: the alligator is waking up or getting full; watch for a phase change.
Drawing conclusions
- Gator does not show direction; check the Alligator or the price for that.
Example
After a long series of red bars, both sides turn green and grow: a trend has begun.
Prices in examples are illustrative.
Watch out for
- Lags the price, like the Alligator.
A little history
Bill Williams, "New Trading Dimensions" (1998).
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.