Gator Oscillator (GO)

◙ Primary Use: Calculating the Life Cycle of the Trend

◙ Trading: Identifying Trend Completion and New Emerging Trends, in Strong Directional Markets

◙ Standard Settings: 13 Periods (13,8,5)

 

Introduction to the Gator Oscillator

Developed by Bill Williams and based on the Alligator Oscillator, the Gator Oscillator aims to identify strong directional price action. It is displayed as a histogram below the chart area:

• The bars above zero (0) represent the absolute difference between the long-term moving average and the medium-term moving average.

• The bars below zero (0) represent the absolute difference between the medium-term moving average and the short-term moving average.

Note: The Gator Oscillator is effective only in trending markets.

 

There Are Four Gator Activity Periods:

(i) Gator Awakes → Bars on either side of the zero line are colored differently (signifying the completion of a cycle).

(ii) Gator Eats → Green bars appear on both sides of the zero line.

(iii) Gator Fills Out → A single red bar appears during the second (eating) phase.

(iv) Gator Sleeps → Red bars appear on both sides of the zero line.

 

Chart: The Gator on EURCAD

 

Calculating the Gator Oscillator

Here is how we can calculate the Gator:

■ ALLIGATORS JAW = SMMA (MEDIAN PRICE, 13, 8)

■ ALLIGATORS TEETH = SMMA (MEDIAN PRICE, 8, 5)

■ ALLIGATORS LIPS = SMMA (MEDIAN PRICE, 5, 3)

Where:

MEDIAN PRICE = ( HIGH + LOW ) / 2

HIGH — is the Higher Price

LOW — is the Lower Price

SMMA (A, B, C) — Smoothed Moving Average.

Parameter А — smoothed data,

В — period of smoothing,

С — Shift in the future

 

Trading with the Gator Oscillator

The Gator can be an effective tool when trading in markets with strong directional price action:

→ Calculating the life cycle of a trend

→ Generating trade signals in trending markets

→ Spotting new emerging trends

→ Indicating trends nearing completion

 

Platform Setup

You can install the Gator Oscillator here:

→ MetaTrader-4: https://www.mql5.com/en/code/7987

→ MetaTrader-5: https://www.mql5.com/en/code/31

Then follow these steps:

□ GO TO → INDICATORS → CUSTOM INDICATORS → GATOR OSCILLATOR

□ ADJUST SETTINGS → 13 PERIODS (13,8,5)

 

 

■ Gator Oscillator

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