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Back to Indicators
TrendLagging

Alligator

Overview

Bill Williams' Alligator uses three smoothed moving averages displaced forward — the Jaw, Teeth, and Lips — to identify trending and sleeping market phases with an intuitive visual metaphor. When the lines intertwine the Alligator is "sleeping" (range); when they fan out it is "eating" (trending). Combine it with the Awesome Oscillator and Gator Oscillator from our indicator guide library for the complete Bill Williams trading system.

How It Works

Jaw = 13-period SMMA displaced 8 bars forward (blue). Teeth = 8-period SMMA displaced 5 bars forward (red). Lips = 5-period SMMA displaced 3 bars forward (green). The displacement shifts each line into the future, creating a visual lag structure that reveals trend phases clearly.

Key Signals

  • All three lines intertwined = Alligator sleeping; avoid trend-following trades.
  • Lips crossing above Teeth and Jaw = Alligator awakening; bullish trend beginning.
  • Lines fanning out with Lips on top = strong uptrend (Alligator eating).
  • Lines converging after a trend = potential reversal or consolidation.

Common Mistakes

  • Forcing trades when the Alligator is sleeping — most false signals occur here.
  • Changing the displacement values without understanding the system design.
  • Using the Alligator without its companion indicators (AO and Gator Oscillator).

More Trend Indicators

GMMA — Guppy Multiple Moving Average

The Guppy Multiple Moving Average plots two groups of EMAs — six short-term and six long-term — to visualise the interaction between trader sentiment and investor sentiment as a ribbon, revealing trend strength and potential reversals. GMMA is widely used in <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets to identify early trend participation. Set it up on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> and combine with the <a href="/academy/indicators/rsi" class="text-primary hover:underline">RSI</a> for timing entries.

SMMA — Smoothed Moving Average

The Smoothed Moving Average applies equal weight to all historical data rather than dropping off older values, producing an ultra-smooth line that excels at identifying the dominant long-term trend. SMMA is the smoothing method used inside the <a href="/academy/indicators/adx" class="text-primary hover:underline">ADX</a> and <a href="/academy/indicators/atr" class="text-primary hover:underline">ATR</a> calculations, making it a foundational building block in <a href="/academy/indicators" class="text-primary hover:underline">technical analysis</a>. It is best suited for <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets where long-term trend clarity is prized over speed.

Parabolic SAR — Stop and Reverse

Parabolic SAR (Stop and Reverse) plots dots above or below price to indicate trend direction and potential reversal points — it is one of the simplest trend-following indicators to use. Combine it with the <a href="/academy/indicators/adx" class="text-primary hover:underline">ADX</a> to filter out low-quality signals in ranging markets and improve your win rate. It also doubles as a dynamic trailing stop; read our <a href="/guides/use-stop-loss-orders" class="text-primary hover:underline">stop-loss guide</a> for best practices on protecting your capital. Explore more trend tools in our full <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.

HMA — Hull Moving Average

The Hull Moving Average was designed by Alan Hull to virtually eliminate lag while maintaining smoothness — it is one of the fastest moving averages available to traders. HMA is ideal for short-term <a href="/strategies" class="text-primary hover:underline">trading strategies</a> in fast-moving <a href="/market/crypto" class="text-primary hover:underline">crypto</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets. Compare it with the <a href="/academy/indicators/exponential-moving-average" class="text-primary hover:underline">EMA</a> and other smoothed averages in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to find the right balance of speed and reliability.

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