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The Williams Alligator indicator is a trend-following indicator that uses three smoothed Simple Moving Averages (SMAs) of different periods: 5-period SMA (Jaw), 8-period SMA (Teeth), and 13-period SMA (Lips). The indicator generates trading signals based on convergence/divergence relationship of the Jaw SMA making the slowest turns and the Lips SMA making the fastest turns.
SMA
SUM1 = SUM (CLOSE, N) SMMA1 = SUM1 / N
Subsequent values
PREVSUM = SMMA_{(i-1) }* N SMMA_{(i) }= (PREVSUM - SMMA_{(i-1)} + CLOSE_{(i) }/ N
where: SUM1 – the sum of closing prices for N periods PREVSUM – smoothed sum of the previous bar SMMA1 – smoothed moving average of the first bar SMMA_{(}_{i)} – smoothed moving average of the current bar (except for the first one) CLOSE_{(i)} – current closing price N – the smoothing period
Williams Alligator
INPUTS
PriceHigh
The following data sources are available for high price:
Open. The Open Price of every bar for the specified period.
High. The High Price of every bar for the specified period.
Low. The Low Price of every bar for the specified period.
Close. The Close Price of every bar for the specified period.
Median. The Median Price of every bar for the specified period - (High + Low) / 2.
Typical. The sum of High, Low, and Close prices divided by 3 for the specified period- (High + Low + Close) / 3.
OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
Volume. The Close Price of every bar + average volume of an asset for the specified period.
PriceLow
The following data sources are available for low price:
Open. The Open Price of every bar for the specified period.
High. The High Price of every bar for the specified period.
Low. The Low Price of every bar for the specified period.
Close. The Close Price of every bar for the specified period.
Median. The Median Price of every bar for the specified period - (High + Low) / 2.
Typical. The sum of High, Low, and Close prices divided by 3 for the specified period- (High + Low + Close) / 3.
OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
Volume. The Close Price of every bar + average volume of an asset for the specified period.
Input
Description
JawLength
The number of bars used in calculation of Jaw average
JawDisplace
The displacement of the Jaw average
TeethLength
The number of bars used in calculation of Teeth average
TeethDisplace
The displacement of the Teeth average
LipsLength
The number of bars used in calculation of Lips average
LipsDisplace
The displacement of the Lips average
Average
The following Moving Average types are available for calculations:
Simple. Simple Moving Average (SMA) is applied to the indicator.
Wilders. Wilders Smoothing is applied to the indicator.
Weighted. Weighted Moving Average (WMA) is applied to the indicator.
Exponential. Exponential Moving Average (EMA) is applied to the indicator.
PLOTS
The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.
Plot
Description
Jaw
The Jaw average plot
Teeth
The Teeth average plot
Lips
The Lips average plot
Color
Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.
Palette
To create a custom color:
Clickto open the color picker
By using the slider at the bottom, adjust the main color
Then, set a shade for the main color on the palette
The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.
Weight
Change the value (in px) to adjust the thickness of the plot.
Type
The following plot types are available:
Linear. The plot is displayed as a line.
Column.The plot is displayed as a histogram.
Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
Points. The plot is displayed as points.
Text above candle. The plot is displayed as the price labels above candles on the chart.
Text below candle. The plot is displayed as the price labels below candles on the chart.
Triangle above candle. The plot is displayed as triangles above candles on the chart.
Color candle. The candles on candle-type charts are highlighted with specified colors.
OVERLAYING
Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.
Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE