Difference between revisions of "Chaos Alligator"

From MultiCharts
Jump to navigation Jump to search
Line 1: Line 1:
 
=== Definition===  
 
=== Definition===  
  
−
Chaos Alligator indicator (or Williams Alligator) is a trend-following indicator based on the idea that financial markets and individual securities usually trend at a lower rate than sideways ranges. It uses smoothed Moving Averages to analyze market trends. The indicator was developed with the thought in mind that both institutions and individuals generally collect more profit when a market is trending strongly.<br>
+
The Custom 1 Line indicator is used to calculate and plot the value of the numeric expression set by the Formula input. It helps to plot any value that is the result of some calculation you intend to use. It is possible to use functions or insert any expression resulting in a number, for example "close - close of 5 bars ago". Additionally, this indicator will generate an alert according to the condition specified by the AlertCondition input. AlertCondition must be either true or false, for example, "range > range of 3 bar ago". The default plot settings are to plot the value in the same subchart as the main data series chart.
−
''Chaos Alligator was first introduced by Bill Williams.'' <br>
 
  
−
The Williams Alligator indicator uses the Simple Moving Average (SMA) indicator in its calculation to add more smoothed averages to the result that generally slow down indicator turns.
 
−
The indicator uses three smoothed Moving Averages (MAs) set at periods that are Fibonacci numbers: five, eight, and 13. <br>
 
−
 
−
The three Moving Averages that are used comprise the Alligator in three major ways: the Jaw, the Teeth, and the Lips/Mouth. These components open and close depending on their subsequent reaction to evolving trends and trading ranges alike. Let’s dig a little deeper into each function of the Williams Alligator indicator.
 
−
 
−
* The Jaw. The Alligator’s jaw is projected as a blue line and begins with the 13-bar SMMA. The line is smoothed by eight bars on its following values.
 
−
 
−
* The Teeth. The Alligator’s teeth are projected as a red line and begin with the eight-bar SMMA. The line is smoothed by five bars on its following values.
 
−
 
−
* The Lips/Mouth. The Alligator’s lips/mouth are projected as a green line and begin with the five-bar SMMA. The line is smoothed by three bars on its following values.
 
−
 
−
The Jaw of the Alligator inherently makes the slower turns, whereas the Lips/Mouth of the indicator make the faster turns.
 
−
<br>
 
  
 
=== Default Inputs ===  
 
=== Default Inputs ===  
  
−
'''Jaw''' = 7 by default.
+
'''Formula''' sets any numeric expression to be plotted, close-close[10] by default.
−
 
 
−
'''JawOffset''' = 8 by default.
 
−
 
 
−
'''Teeth''' = 8 by default.
 
−
 
 
−
'''TeethOffset''' = 5 by default.
 
−
 
 
−
'''Lip'''  = 5 by default.
 
  
−
'''LipOffset''' = 3 by default.
+
'''AlertCondition''' sets true/false expression to define the alert criteria.
  
−
'''Value''' sets the formula (high+low)/2.
 
  
 
[[Category:Pre-built Indicators]]
 
[[Category:Pre-built Indicators]]

Revision as of 16:23, 9 September 2021

Definition

The Custom 1 Line indicator is used to calculate and plot the value of the numeric expression set by the Formula input. It helps to plot any value that is the result of some calculation you intend to use. It is possible to use functions or insert any expression resulting in a number, for example "close - close of 5 bars ago". Additionally, this indicator will generate an alert according to the condition specified by the AlertCondition input. AlertCondition must be either true or false, for example, "range > range of 3 bar ago". The default plot settings are to plot the value in the same subchart as the main data series chart.


Default Inputs

Formula sets any numeric expression to be plotted, close-close[10] by default.

AlertCondition sets true/false expression to define the alert criteria.

Retrieved from "https://www.multicharts.com/trading-software/index.php?title=Chaos_Alligator&oldid=9503"