Alligator indicator is a combination Simple Moving Area, where by default blue, red and green. Where we can imagine indicator alligator like a crocodile's mouth.
If the direction indicator pointing upwards without any alligator that crossed the line was going trend of buy and vice versa.
If the direction indicator pointing down without any alligator that crossed the line was going trend sell.
For the default parameters alligator is 13/8/5 period but by changing the parameters become 8/5/3 it will be faster and detail the direction changes.
Determination open buy and sell
When the candle is above the price or alligator mouth then there has been a trend buy and when prices began to approach or be right at the mouth of an alligator so beware trend reversal might occur.
If the price or candle is below the alligator's mouth then there has been a trend sell.
Widening the distance of each line alligator the stronger the trend is going. Indicator alligator is very appropriate if combined with the RSI indicator, which helps to look at the RSI indicator is overbought and oversold.
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