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Three lined alligator indicator
Alligator indicator consists of three lines. They are moving averages with various parameters. Here they are:
The first line, or the chap of alligator, is a line of balance to the considerable period. It is used for the chart constructing - 13 period smooth shifting average, moved on 8 bars to the future. The Green line, or the lips of alligator, is the line of balance for the considerable period of time, which is one more step less - 5 period smooth shifting average, moved on 3 bars to the future. The Red line, or the teeth of alligator, is the line of balance for the considerable period of time, which is one step less - 8 period smoothed shifting average, moved on 5 bars to the future.
How does one interpret the lines? When all of them are jolloped, it means that the "alligator" is sleeping, and the more it sleeps the more hungry it gets. Of course, when it wakes up after a long sleep, it is very hungry and starts "hunting for food," which is price, till it is glutted. As soon as it happens, it loses interest to the food, which is price, and then the balance lines meet at the same point. It is when you should fix your profit. It is time to close all positions and wait until the alligator awakes up next time.
This indicator's aims are the following:
- To become an easy for usage indicator to trade only in the current trade
- To develop a reliable way of saving the money during the moving of the market bounded with the price channel
- To represent united way for monitoring of the moving of the market
