Gator Oscillator by Bill Williams Forex Strategy

The Gator Oscillator by Bill Williams forex strategy  is a strategy deployed to pinpoint sessions in the market where it experiences slumber and awakeness i.e. trending and non-trending market phases.

This it is able to do by combining the Alligator indicator and the Gator Oscillator, both which obviously happens to be Bill Williams creation.

Chart Setup

MetaTrader4 Indicators: Alligator.ex4 (default setting), Gator-Oscillator.ex4 (default setting)

Preferred Time Frame(s): Any

Recommended Trading Sessions: Any

Currency Pairs: All pairs

Download

Download the Gator Oscillator by Bill Williams Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Let’s start by explaining the rules that explain the Gator Oscillator:

Rule 1: Gator awakes – the bars on different sides of the signal line are colored differently.

Rule 2: Gator eats – green bars on both sides of the signal line.

Rule 3: Gator fills out – single red bar during the “eating” or “Rule 2.”

Rule 4: Gator sleeps – the bars on both sides are red.

Long Entry Rules

Enter a buy in the market if the following rules or condition hold sway:

  1. If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we can look out for bullish signal on the Alligator indicator as a confirmation to go long.
  2. If price opens and closes above the green line of the Alligator indicator as shown on Fig. 1.0, price is said to be bullish i.e. a good time to go long.

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions hold sway:

  1. If the Gator sleeps (shown as Rule 4 on the price chart), it is an indication that market is entering a non-trending state and as such an exit or take profit is appropriate.
  2. If price closes below the green line of the Alligator indicator, it is a signal to exit or take profit appropriately.

Sell Entry Rules

Enter a sell in the market if the following indicator or chart pattern holds sway:

  1. If the Gator Oscillator exhibits “Rule 2” i.e. the Gator eats, we can look out for signs of a downward push from the Alligator indicator as a confirmation to go short.
  2. If price opens and closes below the green line of the Alligator indicator as shown on Fig. 1.1, price is said to be bearish i.e. a good time to go short.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry:

Exit or take profit if the following chart or indicator patterns are on display:

  1. If the Gator sleeps, it is an indication that market is entering a non-trending state and as such an exit or take profit is appropriate.
  2. If price closes above the green line of the Alligator indicator, it is a signal to exit or take profit appropriately.

Fig. 1.1

Free Download

Download the Gator Oscillator by Bill Williams Forex Strategy

About The Trading Indicators

The Alligator indicator is a trend indicator that was created by Bill Williams.

Its central role is to spot trend changes by deploying the behavior of each of the three features of the indicator.

The Alligator has a lot of characteristics. One of which is, if the three lines intersect, the Alligator’s mouth is said to be asleep.

The Alligator gets famished by the minute, and wakes out of its slumber upon seeing price breakout.

The Alligator closes its mouth again when trade volume decreases or when the market is without noise.

The Gator Oscillator is a technical trading tool by Bill Williams and shares a lot of similarity to the Alligator oscillator.it is basically use to spot strong directional action.

Share Now!