Strategy of Bill Williams

Bill Williams created the indicator which helps to define the necessary phases. 

 Driving force and Bill Williams's Alligator 

For installation of the Alligator on the chart, we should click the button Indicators at a toolbar and in the appeared menu we will choose Bill Williams - Alligator

We won’t change settings

Bill Williams's alligator is a combination of three lines of balance: 

The jaw of the Alligator (the blue line) is the 13-period moving average displaced on 8 bars for future; 

Teeth of the Alligator (the red line) is the 8-period moving average displaced on 5 bars for future; 

Lips of the Alligator (green line) is the 5-period moving average displaced on 2 bars for future. 

With the help of by Alligator itis possible to define the direction of the existing trend or its absence. If all three lines are bound, then the Alligator "sleeps". 

At this time the market bargains in the small price range, taking away from the trader earned from the last movement of the price. The longer the Alligator sleeps, the more hungry it becomes and the more strong will be the subsequebt movement of a price. 

While the Alligator sleeps, stay out of the market! 

 Having woken up, the Alligator opens a mouth (Lines of Balance disperse) and begins to hunt for bag. 

Having gorged on, the Alligator falls asleep again (Lines of Balance meet). 

If the Alligator does not sleep, in the market there is a bull or bear trend (bag runs away from the Alligator): 

if the price is above the Alligator mouth, then a trend is bull; if the price is lower Alligator mouth, then a trend is bear. 

One more useful function of the Alligator - help in definition of a marking of waves of Elliot. If the price is outside the Alligator mouth, in the market is formed the impuls wave

and if in a mouth, then correcting 

For simplification of trade on the Alligator, Gator oscillator was created. For installation Gator oscillator on the chart, we will press the button Indicators at a toolbar and in the appeared menu we will choose Bill Williams - Gator Oscilliator 

Gator Oscilliator shows degree of a convergence/divergence of Lines of Balance and is displayed in the form of two histograms: the histogram above zeroshows distance between blue and red lines of the Alligator (Jaw and Teeth); 

the histogram below zero shows distance between red and green lines (Teeth and Lips). 

All columns of each histogram are painted in green and red colors: The column is painted in red color if its value is below of value of the previous column;

The column is green if its value is above of value of the previous column. 

The main objective of Gator Oscillator - to help with visual definition of existence or lack of a trend. With its help the periods of rapprochement and an interlacing of Lines of Balance are well visible. 

Periods of "sleep" of the Alligator 

and periods of his "wakefulness".

We wish you high profit and great success.

It is possible to discuss this strategy at forum