AIMS Gator TV
The Alligator is a very good indicator; it reveals the fractal geometric nature of the market.
To understand AIMS Gator we must first understand Bill Williams Alligator.
There is scientific research behind it and Bill Williams used supercomputers to arrive at this trend-confirming indicator.
The Alligator is our “compass” - it shows us the direction of the trend and is very much in tune with the structure of the market.
Anatomy of the Alligator
The Alligator is made of three smooth moving averages, shifted into the future.
The picture below shows an open gator with its three-line not touching each other.
BLUE LINE:
Interpretation and Use of Information Provided by the Blue Line
Alligator's Jaw (the Blue Line) – is a 13 period smooth moving average, at the mid price (High+Low)/2, offset 8 bars into the future.
The Blue line is the Balance Line for price on the current time frame. Price will come to the Blue Line when there is no new incoming information. This means when the volatility goes down, the momentum will fall and price will stop travelling up and down; it starts going sideways and the Alligator catches up with price. When price is close to the Blue Line, it is said to be at its Balance Line. When price goes sideways, with all three lines intertwined we say, the Alligator is sleeping and that the market has reached its Balance Line. When there is new incoming information, price starts going away from the Balance Line and the Alligator opens its mouth. The rise and fall of momentum is also represented in the form of a histogram by AIMS AO (explained below). The Blue Line mimics AIMS AO as well. You must pay attention to relationship of the Blue Line and AIMS AO.
The Blue Line is the trend and the Balance Line of the current time frame.
RED LINE:
Interpretation and Use of Information Provided by the Red Line
Alligator's Teeth (the Red Line) – is an 8-period smooth moving average, at the mid-price (High+Low)/2, offset 5 bars into the future.
The Red Line is the Balance Line of the significant lower time frame. When price is above the Red Line on M5 we start looking for a buy Setup on M1. When price is below the Red Line on M5 we start looking for a sell Setup on M1. We have a mechanism to display the Red Line of M5 on M1 – it’s called the Purple Line.
Red Line is the trend and the Balance Line of a certain lower time frame.
Alligator's Lips (The Green Line) – 5-period smooth moving average, at the mid-price (High+Low)/2, offset 3 bars into the future.
GREEN LINE:
Interpretation and Use of Information Provided by the Green Line
The Green Line is the Balance Line of a significant lower time frame, even lower than the Red Line. Just like the Blue Line, it also has a relationship with AO but with AO of the 5 times lower time frame.
GreenLine is the trend and Balance Line of a lower time frame than the Red Line.
What is the AIMS Gator?
Now that you know about the Alligator and the relationship of the lines it should be easy for you to understand that the AIMS Gator is the “Multi-Dimensional Alligator”. We trade in the direction of 5 times higher time frame. Wouldn’t it be nice to know what the Alligator of the five times higher time frame telling us? In order to do so, we have chosen to display on M1, the information provided by the Red Line on M5.
AIMS Gator together with the Purple Magic Line,
shows us the Red Line of M5 (5xHTF) on M1 (Current Time Frame).
Alligator is our Compass whereas AIMS Gator is our Map.
PURPLE Magic Line: Script Link
Interpretation and Use of Information Provided by the Purple Line
The Purple Line is the trend of a 5 times higher time frame.
The Purple Line – is a derivative of the Red Line of 5 times higher time frame. On M1, it is the Red Line of M5.
What is the Sleeping Alligator?
We generally want the Alligator to ‘sleep’ before we start looking for a trading opportunity.
The Alligator is considered asleep when the three lines are intertwined and horizontal.
When the Alligator is sleeping and purple magic is hovering below it like in the picture below, we get excited, looking for a range breakout, in this example buy only because gator and price is above the Purple Magic.
To understand AIMS Gator we must first understand Bill Williams Alligator.
There is scientific research behind it and Bill Williams used supercomputers to arrive at this trend-confirming indicator.
The Alligator is our “compass” - it shows us the direction of the trend and is very much in tune with the structure of the market.
Anatomy of the Alligator
The Alligator is made of three smooth moving averages, shifted into the future.
The picture below shows an open gator with its three-line not touching each other.
BLUE LINE:
Interpretation and Use of Information Provided by the Blue Line
Alligator's Jaw (the Blue Line) – is a 13 period smooth moving average, at the mid price (High+Low)/2, offset 8 bars into the future.
The Blue line is the Balance Line for price on the current time frame. Price will come to the Blue Line when there is no new incoming information. This means when the volatility goes down, the momentum will fall and price will stop travelling up and down; it starts going sideways and the Alligator catches up with price. When price is close to the Blue Line, it is said to be at its Balance Line. When price goes sideways, with all three lines intertwined we say, the Alligator is sleeping and that the market has reached its Balance Line. When there is new incoming information, price starts going away from the Balance Line and the Alligator opens its mouth. The rise and fall of momentum is also represented in the form of a histogram by AIMS AO (explained below). The Blue Line mimics AIMS AO as well. You must pay attention to relationship of the Blue Line and AIMS AO.
The Blue Line is the trend and the Balance Line of the current time frame.
RED LINE:
Interpretation and Use of Information Provided by the Red Line
Alligator's Teeth (the Red Line) – is an 8-period smooth moving average, at the mid-price (High+Low)/2, offset 5 bars into the future.
The Red Line is the Balance Line of the significant lower time frame. When price is above the Red Line on M5 we start looking for a buy Setup on M1. When price is below the Red Line on M5 we start looking for a sell Setup on M1. We have a mechanism to display the Red Line of M5 on M1 – it’s called the Purple Line.
Red Line is the trend and the Balance Line of a certain lower time frame.
Alligator's Lips (The Green Line) – 5-period smooth moving average, at the mid-price (High+Low)/2, offset 3 bars into the future.
GREEN LINE:
Interpretation and Use of Information Provided by the Green Line
The Green Line is the Balance Line of a significant lower time frame, even lower than the Red Line. Just like the Blue Line, it also has a relationship with AO but with AO of the 5 times lower time frame.
GreenLine is the trend and Balance Line of a lower time frame than the Red Line.
What is the AIMS Gator?
Now that you know about the Alligator and the relationship of the lines it should be easy for you to understand that the AIMS Gator is the “Multi-Dimensional Alligator”. We trade in the direction of 5 times higher time frame. Wouldn’t it be nice to know what the Alligator of the five times higher time frame telling us? In order to do so, we have chosen to display on M1, the information provided by the Red Line on M5.
AIMS Gator together with the Purple Magic Line,
Alligator is our Compass whereas AIMS Gator is our Map.
PURPLE Magic Line: Script Link
Interpretation and Use of Information Provided by the Purple Line
The Purple Line is the trend of a 5 times higher time frame.
The Purple Line – is a derivative of the Red Line of 5 times higher time frame. On M1, it is the Red Line of M5.
What is the Sleeping Alligator?
We generally want the Alligator to ‘sleep’ before we start looking for a trading opportunity.
The Alligator is considered asleep when the three lines are intertwined and horizontal.
When the Alligator is sleeping and purple magic is hovering below it like in the picture below, we get excited, looking for a range breakout, in this example buy only because gator and price is above the Purple Magic.