Chaos Alligator: Difference between revisions
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→How to interpret results
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=== How to interpret results === | === How to interpret results === | ||
*When the three lines are intertwined, the market is in a resting or consolidating phase, often referred to as the "Alligator is sleeping. | Plots of the Chaos Alligator can help identify the direction and strength of a trend and determine entry and exit points in the market: | ||
*When the three lines are intertwined, the market is in a resting or consolidating phase, often referred to as the "Alligator is sleeping". | |||
*When the lips (green line) crosses over the teeth (red line) and jaw (blue line), "the Alligator is waking up" and a new trend might be starting. | *When the lips (green line) crosses over the teeth (red line) and jaw (blue line), "the Alligator is waking up" and a new trend might be starting. | ||
*When the lines are fanning out and moving in the same direction, it suggests a strong trend, indicating that "the Alligator is eating". | *When the lines are fanning out and moving in the same direction, it suggests a strong trend, indicating that "the Alligator is eating". |