Williams Alligator Indicator Explained

Bill Williams' Alligator is three smoothed moving averages — the jaw (13), teeth (8), and lips (5) — each shifted forward in time. When the lines intertwine, the alligator 'sleeps' (range); when they fan open in order, it 'eats' (trend). The metaphor is playful; the state machine underneath is genuinely useful.

How It Works

• Three SMMAs of different lengths, each displaced several bars into the future.
• Entangled lines = no trend; fanned lines (lips > teeth > jaw for longs) = confirmed trend.
• The mouth 'opening' after a long sleep is the highest-energy signal.

How to Trade It

The classic Williams combo: wait for the Alligator to sleep (compression), then enter on a Fractal breakout in the direction the mouth opens. As a filter, 'lines properly fanned' is a strict, effective trend qualifier for any other entry.

Building It in Setup.Cash

Add Williams Alligator in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Fractals + Alligator are the original pairing — see the Fractals guide. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.