Indicator Cat Oscillator - Guide Part 28

The Gator Oscillator (GO) is a technical study instrument that helps to look at the level of convergence / divergence of the equilibrium lines. Put simply, it makes it simpler for traders to assess when a market is trending and when a market is down by a range. Consequently, it helps to improve the synchronization of operations.

Bill Williams first introduced the Gator oscillator. He has been a great technical analyst and trader who also developed other tools. He developed the GO to expand one of his other indicators called the Alligator Oscillator. The Alligator Oscillator draws 3 lines of balance to teach its readings. The Gator Oscillator works in conjunction with the Alligator Oscillator to instantly recap those 3 balance lines.

How does the Gator oscillator work?

The Gator Oscillator functions as a companion instrument to the Alligator Oscillator. It is effective to recap the next 3 balance lines drawn by the Alligator oscillator.

The Blue Alligator Jaw is a forward 8-bar easy 13-period moving average (SMA)

The Red Alligator teeth are an easy 9 period moving average, 5 bars forward

The green alligator lip is a 5-period easy moving average, 3 bars forward

The purpose of the GO is to teach the level of convergence / divergence of those equilibrium lines. Show your reading using 2 bars, the preeminent bar and the bottom bar. The preeminent bar represents the difference between the blue jaw and the red tooth lines. The bottom bar shows the difference between the red teeth and the green lip line. The GO calculates and shifts balance lines into the future based on the portion founded by merchants. If the moving averages are plotted on the charts, the jaw is going to be blue, the teeth are going to be red, and the lip is going to be green. The bars of the Gator oscillator have a choice of being red or green. A green bar represents the increase, while the red bar suggests a decline. It also has 4 phases that it is also essential to know in order to interpret the indicator.

How to interpret the Gator Oscillator?

The interpretation of the Gator oscillator asks that operators know the 4 phases of the oscillator.

The Gator oscillator is in sleep mode once there are red bars on either side of the zero line.

The GO indicator is in wake-up mode once a sidebar turns green where it remains red.

The indicator is in the food intake stage once there are green bars on either side and consequently the difference between both sets of moving averages also increases.

The Gator Oscillator is a satiated mode once one of both sides turns red again. In most cases, it suggests a slowing trend and also preceded a subsequent trend reversal.

How to trade with the indicator?

The Gator Oscillator is most effective for trading in trending market conditions. Mainly, traders open positions once the indicator wakes up and maintain the prostration stage of the trend until both sides turn red again. The operators also have the possibility to continue a more conservative plan. They have the ability to lock in and exit their position once the Gator Oscillator is satiated. This approach lessens the danger and the overall gain.