Alligator Indicator Explained -- Williams alligator indicator trading strategy settings -- with David Moadel
hello friends and welcome to looking at the markets with David Modell today I
will explain the basics of the Williams alligator indicator that's a cool name
right and before I get into it just want to let you know if you need more help
with trading or investing or if you want to get some help putting together your
own trading or investing plan because you really need to have a plan otherwise
you don't know what you're doing you can contact me for coaching by email at
David Modell at gmail.com and also below this video I'm gonna put some free
financial reports and I co-authored them the reports and you can download one or
as many as you like alright so let's move on over to the Bill Williams
alligator indicator invented by Bill Williams and I'm on trading view dot-com
and if you want to know how to get that indicator on trading view at least you
go to indicators and strategies don't look look under a for alligator no no no
you look for W for Williams alligator okay and then the default settings are
the five the eight and the thirteen all right which is the the lips the teeth
and the jaw those are the colorful names that Bill Williams gave to it but it you
know you can call the lips teeth and jaw that's fine if it helps you to remember
it I just think of it as the five eight and thirteen period moving averages
because that's all it really is they're just you know giving it interesting
names okay so and a lot of is just your basic moving average crossover stuff you
know how with moving average crossover as you enter when the faster moving
average crosses above the slower ones and then you exit when the faster moving
average crosses below the other two you know that's pretty normal stuff this one
is the same thing it has some interesting cute names and well I don't
know let's see if this is something that you might be interested in alright and
by the way you can change the standard settings 5 8 and 13 for the lips teeth
and jaw if you want to you can totally adjust these things at least on
tradingview alright so supposedly the alligator is sleeping when all three of
these you know the lips teeth and jaw when they're all close to each other
when there's not much space between them and you don't probably want to take a
long or short position according to the Bill Williams alligator
indicator system all right so that's when the alligator is sleeping when all
three lines are close to each other then when the de lips you know the five
period moving average clearly breaks above or below the other two that's when
the alligator is awakening okay the alligator is waking up and you consider
taking a longer short position long if the moving average if the five period
crosses clearly crosses above the other two that would be a bullish and you
consider you start to look at possibly taking a long position if the the five
the green one you know the lips crosses below the
other two then you would start looking at possibly taking a short position all
right and then so that's when the alligator has gone from sleeping to
waking up or awakening and then the alligator is eating when the the candle
the candlestick is clearly above all three lines okay
that's if it's already bullish according to the crossover then you would actually
take a long position you would actually buy at that point that's when the
alligator is eating okay or if the break was below if it was
bearish then the alligator is eating bearishly when the candle next
candlestick it closes clearly below all three lines that's after the the cross
over to the downside all right and then you would stay in your position you
would it's just normal you know moving average crossover stuff let's say it's
bullish just you know for this example so you'd stay in the position until
until it crosses back below okay or you can get out when when it's sleeping it
looks like it's almost sleeping here they're pretty close together all right
but for me I would stand just because you know I'm a custom is staying and
riding it all the way up until you know the faster moving average crosses below
the other two all right so you know that's pretty much it it's kind of an
interesting concept you know the idea of sleeping helps you just stay out when
there's not much movement because yeah it's hard to trade
you know sideways choppy markets it's easier to trade trending markets so
again sleeping when all three moving averages are close together the
alligator is awakening when the green you know the lips the five period moving
average crosses clearly below you know above in this case or you know bullish
or below for bearish and that's when you consider looking at it for possibly a
long or short position soon and that amendment that's when the alligator is
awakening and then the alligator is eating when not only that happens but
also the the next candle stick closes clearly above all three lines or below
all three lines and that's when the alligator is eating and that's when you
would take your long or short position and write it all the way up or down
until it crosses back below pretty simple and kind of a neat idea is it
better than other triple moving average crossover systems I don't know if it's
better or worse it's just kind of interesting and at least it'll keep you
hopefully out of non trending markets alright so I hope this was helpful for
you you know this is not the whole system that's just an introduction but
you can actually try using it this way but if you do please be careful with
your capital understand that no system works a hundred percent of the time this
does not work all the time okay be ready to take some losses in any system and
please use small position sizes at all time protect yourself have your stop
losses ready if you're using stop losses and if you want more help again you can
contact me for coaching I do offer that you can email me at David Modell at
gmail.com check out the free financial reports below this video in the text
description if you like this video if you found it helpful please give it a
thumbs up on youtube do that right now why not and leave a comment what do you
think of this system is it you know is it just a bunch of colorful names or is
it a really cool system what do you think I want your opinion and also if
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whenever I put out new videos thanks a lot I really appreciate it and I'll talk
to you again soon