Gator Oscillator

The Gator Oscillator is a technical indicator based on the Alligator Indicator. The Gator Oscillator allows traders to quickly reference the spread between the Alligator Indicator’s charted lines.

When the Alligator lines tighten, the graphical Gator Oscillator reflects this change. When the lines on the Alligator widen, the Gator Oscillator reflects a widening pattern.

How to Interpret the Gator Oscillator

The Gator Oscillator revolves around a fixed zero point. There are two conditions, positive and negative, that forex traders need to know to trade this indicator:

• Negative – When the Gator Oscillator turns negative, the oscillator shows the distance between the blue and red lines of the Alligator indicator.
• Positive – When the Gator Oscillator turns positive, the oscillator shows the distance between the red and green lines.

The distance between the two lines is registered in absolute terms. There is no negative distance in this calculation, as it isn’t important to how the oscillator functions.

Gator Oscillator Color

The Gator Oscillator uses color to provide even more information to technical traders. Red and green are important to making an interpretation about the next forex price move. Here’s what each color means to traders:

1. Green – Green appears when the difference is changing positively. The distance between the two lines in the Alligator Indicator is growing.
2. Red – Red appears when the difference is changing negatively. The distance between the two lines in the Alligator Indicator is shrinking. The lines are said to be tightening.

Know the Gator Oscillator

The Alligator Indicator has its own description, which is based on the eating and sleeping patterns of real Gators. The “mood” of the Alligator (and thus the potential to make money long or short) depends on what you see in the Gator Oscillator.

1. Gator Wakes – The Gator awakes from its slumber only after a period of sleeping. When the Gator awakes from sleep the bars above and below zero are green or red. Both green and red must appear, and where they appear (in positive or negative territory) is not important.
2. Gator Eats – The Gator eats when both bars, above and below zero, are green.
3. Gator Goes for Desert – The Gator stops eating once one of the bars above or below zero turns red.
4. Gator Sleeps – The Gator sleeps when both bars are red.

Gator Oscillator Settings

The Gator Oscillator is best used with default settings. Popular forex platforms have changed the indicator slightly to shift right the Gator oscillator from its natural position. Shifting a oscillator right means that the Gator is essentially running ahead of the price, a condition which makes it less accurate.

Free the Gator Oscillator; return it to its original position. You’ll be rewarded with a hungry Gator just waiting to eat more pips with each trade.