Bill Williams Alligator - Alligator Indicator Formula

If you want to catch the trend before it fully develops, the Alligator indicator is one of the most effective tools to use. In this video, we break down how the three Alligator lines reveal when the market “wakes up” and when a new trend begins. Once the lines spread apart, momentum enters the market and real direction forms. To filter out fake signals, we combine Alligator with the Momentum indicator. Momentum above 100 confirms a buy, while readings below 100 confirm a sell. This simple filter