Biil Williams Aligator Indicator Explanation on BTC MarketCap
Hello Friends.
Today we will explain Aligator indicator on BTC Marketcap Chart.
this post has 2 purpose:
1)BTC marketcap analyze
2)Learn how Bill Williams Aligator indicator works
First lets see how this indicator works:
The Alligator indicator is composed of three smoothed moving averages.
It is named ‘alligator’ because it mimics the feeding habit of the animal and can help traders
pick out the best times to ‘feed’ on the pips available in a trending market.
Here are the lines that constitute the Alligator indicator:
Trading Rules:
When the lines are intertwined or converging, it implies that the market is ranging (the ‘alligator’ is sleeping).
The longer the alligator sleeps, the hungrier it will wake up; prolonged consolidation will imply a massive breakout.
The alligator’s lip will be the first to move (crossing above or below the jaw) when it is waking up, which denotes the
Begining of a new trend.
An upward movement implies an uptrend might be forming, whereas a downward movement implies that a potential downtrend is starting.
A trend will be confirmed when the alligator’s teeth cut through the lips.
This will be the signal to buy in a confirmed uptrend or to sell in a confirmed downtrend.
The signal to take profits will come when the lines start to converge again, which will mean that the alligator is now about to repeat the sleep cycle.
Now lets see what happened in BTC marketcap According to this Strategy:
We can see awakening of aligator from 9 march 2020 untill 12 april 2021.
it shows a strong uptrend and aligator lines divergence.
I show it with a Green Ellipse in chart.
after that aligator go to sleep for a while from 12 april 2021 to 18 jan 2022.
so we can see a Range in price and aligator lines converging.
I show that with a Yellow Ellipse in chart.
after that we see aligator lips and teeth breaks jaw and aligator awake in a downward trend
so we approch a bearish market and i show that with a Red Ellipse.
no one know how much this cycle last.
after this section i think aligator go to sleep again and after that awake upward.
please protect your capital and know about market cycles.
we could see new bottoms so we must manage our risk.
after that when diffrent conditions confirm uptrend we can buy again.
Remember:
Buy expensive but confident
!!!NOTE!!!
MY POSTS ARE NOT TRADING AND INVESTING ADVISE.
SO DO ON YOUR OWN OPINION AND CONSIDER MARKET RISKS.
Thank you all for reading this article hope that be useful for you.
share me your opinion in comment please.
Today we will explain Aligator indicator on BTC Marketcap Chart.
this post has 2 purpose:
1)BTC marketcap analyze
2)Learn how Bill Williams Aligator indicator works
First lets see how this indicator works:
The Alligator indicator is composed of three smoothed moving averages.
It is named ‘alligator’ because it mimics the feeding habit of the animal and can help traders
pick out the best times to ‘feed’ on the pips available in a trending market.
Here are the lines that constitute the Alligator indicator:
- Alligator’s Jaw
This is a 13-period smoothed moving average.This line is typically visualised in blue.
Alligator’s Jaw = SMMA (median price, 13, 8)
- Alligator’s Teeth
This is an 8-period smoothed moving average. This line is typically visualised in red.
Alligator’s Teeth = SMMA (median price, 8, 5)
- Alligator’s Lips
This is a 5-period smoothed moving average. This line is typically visualised in green.
Alligator’s Lips = SMMA (median price, 5, 3)
Trading Rules:
When the lines are intertwined or converging, it implies that the market is ranging (the ‘alligator’ is sleeping).
The longer the alligator sleeps, the hungrier it will wake up; prolonged consolidation will imply a massive breakout.
The alligator’s lip will be the first to move (crossing above or below the jaw) when it is waking up, which denotes the
Begining of a new trend.
An upward movement implies an uptrend might be forming, whereas a downward movement implies that a potential downtrend is starting.
A trend will be confirmed when the alligator’s teeth cut through the lips.
This will be the signal to buy in a confirmed uptrend or to sell in a confirmed downtrend.
The signal to take profits will come when the lines start to converge again, which will mean that the alligator is now about to repeat the sleep cycle.
Now lets see what happened in BTC marketcap According to this Strategy:
We can see awakening of aligator from 9 march 2020 untill 12 april 2021.
it shows a strong uptrend and aligator lines divergence.
I show it with a Green Ellipse in chart.
after that aligator go to sleep for a while from 12 april 2021 to 18 jan 2022.
so we can see a Range in price and aligator lines converging.
I show that with a Yellow Ellipse in chart.
after that we see aligator lips and teeth breaks jaw and aligator awake in a downward trend
so we approch a bearish market and i show that with a Red Ellipse.
no one know how much this cycle last.
after this section i think aligator go to sleep again and after that awake upward.
please protect your capital and know about market cycles.
we could see new bottoms so we must manage our risk.
after that when diffrent conditions confirm uptrend we can buy again.
Remember:
Buy expensive but confident
!!!NOTE!!!
MY POSTS ARE NOT TRADING AND INVESTING ADVISE.
SO DO ON YOUR OWN OPINION AND CONSIDER MARKET RISKS.
Thank you all for reading this article hope that be useful for you.
share me your opinion in comment please.