Chaos Alligator: Difference between revisions
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To analyze market trends and potential turning points, the Williams Alligator indicator uses smoothed moving averages set at periods based on Fibonacci numbers: 13, 8, and 5. They are Jaw, Teeth, and Lips/Mouth correspondingly. | To analyze market trends and potential turning points, the Williams Alligator indicator uses smoothed moving averages set at periods based on Fibonacci numbers: 13, 8, and 5. They are Jaw, Teeth, and Lips/Mouth correspondingly. | ||
* '''Jaw''' is a blue line that begins with the 13-bar SMMA and shifted forward by 8 bars. | * <font color="blue">'''Jaw'''</font> is a blue line that begins with the 13-bar SMMA and shifted forward by 8 bars. | ||
* '''Teeth''' are a red line that begins with the 8-bar SMMA and shifted forward by 5 bars. | * <font color="red">'''Teeth'''</font> are a red line that begins with the 8-bar SMMA and shifted forward by 5 bars. | ||
* '''Lips/Mouth''' are a green line that begins with the 5-bar SMMA and shifted forward by 3 bars. | * <font color="green">'''Lips/Mouth'''</font> are a green line that begins with the 5-bar SMMA and shifted forward by 3 bars. | ||
The Jaw of the Alligator inherently makes the slower turns, whereas the Lips/Mouth of the indicator make the faster turns.<br> | The Jaw of the Alligator inherently makes the slower turns, whereas the Lips/Mouth of the indicator make the faster turns.<br> |