The Bitcoin price action chart shows the blue line of the MACD threatening to drop under the orange line, hinting at bearishness. The sated phase or zone of the Gator Oscillator validates the MACD-specific finding. Both these indicators gator oscillator suggest that BTC might move in a range or even correct a little in the short-to-mid-term.

After that, we need to look for the color and size of the bars, per the histogram analysis, to locate the next leg of the trend. If both the histogram bars are green, expect the market to be in the eating phase. This is where traders take most of the profit, capitalizing on the momentum. The risk management element is taken care of when you start closing your open position, and all the green bars turn green and red, hinting at a sating phase. The Gator Oscillator is still a lagging indicator, showcasing the trend’s strength rather than the direction unless you use it to analyze the trading divergence. The Gator Oscillator is a simplified version of the Alligator indicator.

How do you trade with the Gator Oscillator?

• Practicing with a demo account can help them get used to the indicator and how it interacts with the market.
• One of them has sold 30,000 copies, a record for a financial book in Norway.
• When the histogram bars are contracting, it means the Alligator is closing its mouth, telling you it’s time to get out of the market.
• An ideal situation would be when only green bars with increasing amplitude appear on the indicator, which indicates the beginning or continuation of a strong buy trend.

In order to try the indicator performance alone or in the combination with other ones, you can use Forex Tester Online with the historical data that comes along with the program. After all the sides of the indicator were revealed, it is right the time for you to try either it will become your tool #1 for trading. In any case, when a potential entry point on Alligator indicator appears, you need to pay attention to the amplitude of the Gator Oscillator histogram. With the help of the Gator Oscillator it is convenient to determine the prospects of the balance lines cross. The «-1» factor is required to display the second histogram in a negative value range. Some of the most popular oscillators in the market are the Stochastic oscillator, Relative Strength Index (RSI), Relative Vigor Indicator (RVI), and the Commodity Channel Index (CCI).

• Note that these phases were between January and February 2021, and BTC embarked on several such journeys to reach a peak of almost $69,000 by the end of the year.
• The appearance of highs and lows in the histograms means the presence of a strong trend in the market.
• You do this by taking a 13-period simple moving average (SMA) of the asset with 8 bars forward.
• Then came the awakening phase with the broadening green bars and occasional red here and there.
• In 2024, the price of BTC seems to be trading in the sleeping zone, slowly transitioning to the awakening zone.
• This pattern simply means that the number of bulls is more than bears.

MACD helps locate the potential reversals and trend-based momentum. To use the Gator Oscillator with the MACD indicator, you might want to focus on the convergence and divergence between the two indicators to get the strongest possible trading signals. However, besides the technical analysis, broader crypto market sentiments also plays a key role in determining BTC’s price action. This is unlike other histogram indicators, which plot bars on one side of the zero line at a time, representing periods when the indicator readings are positive and when they are negative.

Как торговать по Индикатору Gator Oscillator – Сигналы и Настройки

On the flip side, if the red bars are rising and the Alligator lines are above the price, it is a strong downtrend. Reading the Gator Oscillator is all about understanding the elements. Notably, while this oscillator helps with the entry and exit points, it can signal the trend direction, provided you know how to read the trading divergence.

We shall now look at the historical chart of Bitcoin, starting in 2021 and following all the way till the peak formed towards the end of that year. The first encircled zone hints at a consolidation or sleeping phase with all-red, smallish bars. To combine the Gator Oscillator with other indicators, you have to look for indicators that complement it so you can use them to create a robust trading strategy. One group of indicators that can complement the Gator Oscillator is volume indicators, as they can show whether the Alligator’s eating mode is accompanied by huge trading volumes. Thus, the Gator Oscillator can be used in any financial market, including the forex market where volume-based indicators don’t work because of a lack of volume data. When the moving average lines are twisted on each other, the Alligator is sleeping.

The bottom bar of the indicator represents the difference between the red teeth and the green lip line. The upper bars represent the difference between the blue jaw and the red teeth lines. The green line shows that the price rose while the red line shows that the price declined.

When applied on a chart, the Gator oscillator has one horizontal line and red and green bars. It suggests Alligator eating, meaning the trend will continue, and you should keep your positions open. If the Gator bars are above the zero line, and the Alligator indicator blue line (jaws) and the red line (lips) are above the price, it indicates a stronger downtrend.

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To customize the Gator Oscillator settings, create a trading strategy based on the indicator and backtest it. While backtesting the strategy, you experiment with different settings to find the ones that work best for the market you are trading and the timeframe you trade on. The Gator Oscillator helps determine whether a market is in a trend or if it’s simply consolidating. It’s used to decide when to enter and exit a trade, as timing in trading is crucial. The Gator Oscillator is typically used in conjunction with the Alligator Indicator, as a secondary indicator.

The trade is always opened in the direction of the balance of the main indicator’s lines (see also here). Emergence of the max/min on histograms means presence of a strong trend at the market. Max of the upper histogram matches the period of the greatest discrepancy of the “Jaws” and “Lips” lines of the Alligator.

Using the Gator Oscillator with the 2024 BTC chart

As you can see, the Gator Oscillator simultaneously plots histogram bars above and below the 0.0 centerline. It consists of a dual histogram with bars simultaneously plotted above and below the 0.0 centerline. The most reliable strong trend signals can be considered at the extreme points of the histogram (max/min) – a trader can trust them completely. A reliable signal for the trade opening is the appearance of a large green bar, which confirms the presence of a strong trend in the market. But in any case, it is recommended to give the priority to the Alligator’s signals before entering a trade. In fact, this is a modification of the Alligator indicator, which turns a system of three moving averages into a normal oscillator.

It has one main task − to filter the flat periods and show the moments of the Alligator’s lines crossing. Gator Oscillator was created as an auxiliary tool for trading using the Alligator indicator, so it gives practically the same signals. The indicator is located in an additional window under a price chart and consists of the two histograms which are separated by a zero line. We have also looked some of the top strategies to use when using the indicator. A good example of the Gator Oscillator is shown in the AMD stock shown below.

Stop loss can be placed slightly below the previous support level. You can sell an asset if you see the complete red column in gator oscillator histogram. Stop loss can be placed slightly above the previous resistance level. In addition, you will receive 23 years of free historical data (easily downloadable straight from the software). Typically, in real strategies, this indicator is used by the active followers of Bill Williams, but necessarily it should be complimented with the other tools.

Volume Indicators (Best Volume Types For Trading)

The Gator oscillator is used in combination with the Alligator indicator. One of them has sold 30,000 copies, a record for a financial book in Norway. How you troubleshoot common issues with the Gator Oscillator will depend on your trading platform and its indicator coding methods. Check your trading platform for guidance if you have any issues with your Gator Oscillator system. The factor “-1” is necessary to display the second histogram in the negative value region.

Here’s why it’s an essential oscillator for those seeking precise trading signals without the overload of multiple indicators. That’s the market you want to be in to profit from the price momentum. On the other hand, when the market is consolidating, the Gator histogram bars will start contracting, warning you to get out of the market. Yes, the Gator Oscillator can be used in all markets since it is based on the Alligator Indicator, which uses only the price data to compute its component SMMAs. All tradable financial markets display their price data, and that is the only data needed for calculating the SMMAs that make up the Alligator Indicator which is what the Gator Oscillator represents. The Gator Oscillator is considered as an auxiliary tool and is not usually used on its own.