The Gator oscillator is very similar to the Alligator indicator in that it helps detect trend changes in an asset’s price.
The main difference between the two is that while the Alligator uses moving average lines, the Gator uses a histogram.
In this section, You will learn –
The Gator indicator is based on the principle that trends – just like a living alligator – go through four different phases:
Each time period is represented by two bars, one on top of the other.
Sometimes they are both green, sometimes both red and sometimes they are both colours. So there are 4 combination – GG,RR,GR,RG
During the Gator sleeps phase, both bars are red.
During the Gator eats phase, both bars turn green again.
Enter trades as Gator awakens
When using the Gator oscillator,
As the Gator oscillator is based on a system of moving averages, be aware that there may be a time lag between price changes and the indicator moving into its various phases.
The Gator oscillator works well in all market conditions as it is designed to identify each phase of the market’s cycles.
As it also triggers “Sell Signal” as per the theories of Price Signal. You can also see how the Alligator Oscillator indicator tells you to enter a position during the indicator’s awakening phase, hold it through the eating phase and exit it during the sated phase.
This indicator is a good alternative to MFI indicator We use in Entropy.
Hope You have enjoyed the discussion.