R Alligator

The R Alligator indicator was introduced by Bill Williams, it follows the trend with the help of 3 smoothed moving averages.

By default, the following values are used:

• The 13-period smoothed moving average (known as the Jaw)
• The 8-period smoothed moving average (known as the Teeth)
• The 5-period smoothed moving average (known as the Lips)

The R Alligator indicator reduces the number of false trend trades through the use of smoothening moving averages.

Basic Trading Signals

The R Alligator indicator is a typical crossover system indicator.

Buy trade conditions:

• The 5-period smoothed moving average above the 8-period smoothed moving average and above the 13-period smoothed moving average
• The 8-period smoothed moving average above the 13-period smoothed moving average

Sell trade conditions:

• The 5-period smoothed moving average below the 8-period smoothed moving average and below the 13-period smoothed moving average
• The 8-period smoothed moving average below the 13-period smoothed moving average