A technical indicator developed by Bill Williams consisting of three smoothed moving averages known as the jaw, teeth, and lips. When the lines are intertwined the market is ranging; when they separate a trend is emerging. The Alligator indicator helps traders avoid choppy sideways markets and focus on high-probability trending moves.
Example
“The Alligator's jaws opened wide on the 4-hour chart, signaling the start of a strong new uptrend in the pair.”