What it is
The Alligator is three smoothed moving averages drawn on price. When they are tangled the market is ranging (the Alligator is 'sleeping'); when they spread apart a trend is running. The Gator Oscillator takes that picture and turns it into bars so you can see the spreading and narrowing clearly.
It does not show direction. Both histograms grow in an uptrend and in a downtrend, so you read direction from price or the Alligator itself.
How it is calculated
1. Use median price, (high + low) / 2. 2. Jaw = 13 period smoothed moving average shifted 8 candles forward. Teeth = 8 period shifted 5. Lips = 5 period shifted 3. 3. Upper histogram = the absolute gap between jaw and teeth. 4. Lower histogram = minus the absolute gap between teeth and lips, so it plots below 0. 5. Each bar is green if bigger than the previous bar, red if smaller.
How to read it
How to trade it
- 1
On a 1 hour gold chart, wait for a sleeping phase: both histograms small for several candles.
- 2
When both sides turn green, check which way price broke: above the Alligator for longs, below it for shorts.
- 3
Enter on the close of the first candle with both sides green and price clear of all three Alligator lines.
- 4
Stop on the far side of the Alligator jaw, for example 10 to 15 points on gold.
- 5
Hold while both sides stay green; exit or tighten the stop once both turn red.
The trend idea is cancelled if price closes back through the Alligator lines, or the histograms shrink straight back to sleeping within a few candles.
WickSpeak plots the Gator Oscillator in its own pane and writes a plain-English reading on the live candle: what it is, which phase the Alligator is in now, how traders use that phase and what would prove it wrong. It pairs naturally with the Alligator drawn on the price chart.
Best markets and timeframes
Best on 1 hour to daily charts where trends last long enough for the phases to develop. On 1 to 5 minute charts it cycles through phases too quickly to be useful.
Common mistakes
- Reading the bars as up and down. Both histograms grow in a downtrend too.
- Entering during the sleeping phase in the hope of catching the move early.
- Using it without the Alligator or price, which you need for direction.
Works well with
Questions traders ask
What does the Gator Oscillator show?
It shows how far apart the three Alligator lines are. Wider gaps mean a stronger trend; narrow gaps mean a range.
What are the four phases of the Gator Oscillator?
Sleeping (both sides red and small), awakening (one side turns green), eating (both sides green and growing) and sated (bars turning red after a trend). They describe a trend being born, running and ending.
Does the Gator Oscillator show trend direction?
No. It only shows whether a trend is present and how strong it is. Use the Alligator on price, or price itself, to decide whether to buy or sell.
Can I change the Gator Oscillator settings?
It uses the standard Alligator lengths of 13, 8 and 5 with shifts of 8, 5 and 3. WickSpeak keeps these fixed so the reading matches Bill Williams' method.