Alligator Indicator Stock market, Line chart, Chart

This keyword will return the rolling mean of the series selected of the particular instrument. Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Leg TSL and Leg Exit to be used only if the entry legs will trade once, it will not work for reentries.

Bill Williams Profitunity has added a few things in it like profit taking and reversal in case of steep move etc to the original Alligator. Scalping indicators can prove helpful while executing trades. That said; you can learn about these indicators with time and experience with the help of an excellent trading platform and advisory services. To learn about scalping indicators, reach out to us at Angel One. We can also change the field value to quantity and it will return the quantity of the traded instrument. The keyword shared above will find the minimum tick size for all the instruments within the Nifty 50 stocks list as prescribed by the exchange.

The symbol keyword will be a default keyword under most keywords. It will be available by default wherever instrument needs to be selected. This keyword will allow the brick size to be maintained as a variable. In order to modify the same, click on ‘Renko- Closed bricks’ and select the number/ series which you need to keep as the brick size. Position detail in a strategy level keyword and not a set level keyword. No matter which set you use it in, it will return the output based on all the sets ie.

The triple exponential moving average is a modified moving average designed to smooth large price fluctuations. The above keyword will return the previous day RSI 14 value of ACC. Since Renko is an independent candle type, it can be accessed by clicking on the name of the indicator and selecting the candle type as Renko.

A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. As shown in the above example, you can find the previous 5 minute close of the current week ATM CE and PE for the weekly option for Nifty 50 and sum it up. This keyword returns the current month as an integer from 1 to 12. January Is Month Number 1, February is 2 and naturally, December is 12. The above condition is checking if the Previous day(-1) MFI value is greater than 80 for Nifty 50 futures.

How does an Alligator indicator work?

It uses three moving averages, set at five, eight, and 13 periods. The three moving averages comprise the Jaw, Teeth, and Lips of the Alligator. The indicator applies convergence-divergence relationships to build trading signals, with the Jaw making the slowest turns and the Lips making the fastest turns.

It is suggested to use Max profit to define a custom trailing stop loss on a strategy. Max profit should ideally be multiplied with the multiplier as shown in the image below in the Universal exit of a strategy. The above condition is checking if the Previous day(-1) DMI negative value is lesser than the previous to previous day value (-2) for Nifty bank spot. This keyword gives you the difference between the Last Traded Price of an instrument and the previous day’s close price of that instrument in percentage. This keyword will return the Implied Volatility of the ATM option for the selected underlying instrument. ALMA is used to eliminate minor price fluctuations and enhance the trend of the market.

Bottom line on Alligator Indicator

Also, the period when the alligator is sleeping is when all the three balance lines are entwined or closed. This is when traders witness several crossovers, which appear as trading signals. The Simple Moving Average Indicator or SMA indicator is the most basic type of indicator traders rely on to device a trading strategy. It shows traders the average price of their trades, over a specific time. The Alligator indicator was introduced by Bill Williams in the year 1995. It is one of the most popular indicators in the world of forex trading and is frequently used by traders for understanding and predicting key trends and price momentum.

alligator indicator

These are the people who are well-versed with trading and aware of the various advanced, trading methods and strategies. One such term that perhaps only advanced traders are familiar with is scalping. Here’s an introductory guide on scalping and scalping indicators. The Alligator helps you spot a real trend and stay out of range-bound trading, which always result in losses. The Alligator is the combination of three balance lines viz., the blue line (alligator’s jaw), the red line (alligator’s teeth) and the green line . This keyword will return the Zscore of the selected series of the particular instrument.

Once satisfied, the Alligator closes his mouth once again and goes to sleep. Third stage is when three lines close above and below the price, meaning Alligator is awakened and hungry. So the entry point should be placed at the nearest fractal, lying above the Alligator lines. Place the stop-loss behind the level of the nearest opposite fractal, lying below the Alligator lines.

Positions Detail

Post that click on the indicator to select keyword ‘OHLC Sum’. In order to OHLC spread, you need to select position keyword and then select the series/indictor for which you need to find the spread between the two instruments. Post that click on the indicator to select keyword ‘OHLC Spread’. This keyword will return a numerical value of the strike of the instrument with the maximum open interest at that instant.

What is alligator in stock market?

The alligator indicator is invented by Bill Williams of the Profitunity Trading Group. It is actually a combination of 3 moving averages shifted by some variable periods. The default moving averages in the setup is 13, 8 and 5 moving averages. This indicator is particularly good in trend trading.

Thus it is suggested to add a time condition along with the ORB condition as an AND. Keyword should notbe used restrict the number of positions taken in a strategy as shown below. Multiplier is the keyword used when we want to multiply any value in the strategy as per the multiplier selected during that deployment.

Net Quantity

Suppose you are trading a list of stocks and want to limit the number of entries by 5 for the day/counter. Suppose you have a 1 set strategy where you are building a long straddle. In the example share above, we are looking for the condition where the LTP of Nifty 50 spot is greater than the high between 915 AM and 930AM. We are also looking for the same to execute only if its 930AM. In this case logically speaking, the number of open positions returned should be 1. However the Tradetron engine will not consider the open positions as 1 and will return 3 as it detects three unique entries.

Another utility for this keyword is to build a custom trailing stoploss logic. This is very similar to the TSL feature in the advance settings however certain customizations in the Difference Between SOX and SOC Compliance same are not possible. Using the Max profit keyword one can customize the levels at which TSL gets triggered. Feel free to use multiple leg exits to add targets and stoplosses.

Previous Close

PNL is a strategy level keyword, generally kept in set exit, to exit all open positions of the underlying instrument while keeping all other positions untouched. This keyword will fetch the maximum profit achieved by the strategy during one run counter of the same. Max profit is a strategy level keyword and will take into account the total realized and unrealized profit of all positions taken.

  • Here you can either select one instrument or a list of instruments.
  • This keyword will fetch the ‘Lips Length’ line of the Nifty 50 spot day candle.
  • Price Data sourced from NSE feed, price updates are near real-time, unless indicated.
  • This keyword will round off the values to the base you select.

On any series, like close in the above example, you can also plot EMA of RSI, OPEN etc. Init var is very useful when you are using python or condition action based coding in Tradetron. Please note the values entered in Init var are case and space sensitive. You can fetch the Highest High on any series, like close in the above example, you can also plot EMA of RSI, OPEN etc. The above example will check if the previous (-1) 5 minute candle of Nifty 50 was an inverted hammer.

alligator trading system

However, this tool functions best once it is used along with another indicator that is capable of identifying momentum. Trading strategies usually require multiple technical analysis indicators to increase forecast accuracy. Lagging technical indicators show past trends, while leading indicators predict upcoming moves.

How do you read an alligator indicator?

The alligator is a combination of moving averages or balance lines on the chart. The first balance line is called the Jaw. The second balance line is called the Lips and the third one is called the Teeth. These lines help us to identify when there is no trend in the market. It also helps us in understanding when the trend is forming and in which direction. When these lines are close together it denotes no trend. On the other hand, when these balance lines are far from each other it denotes a strong trend in the market.

If the difference between the two is greater than 1000, the universal exit will be activated. This number can also be modified based on the logic of a strategy. Thus if you need the TSL to be very sensitive the number can be a smaller number like 200 or 500. If you need the TSL to be more accommodative, you can select a larger number.

alligator indicator

Pay 20% or “var + elm” whichever is higher as upfront margin of the transaction value to trade in cash market segment. When the MACD line crosses above the signal line a buy signal is generated. When the MACD crosses below the signal line a sell signal is generated. Vega keyword returns you the vega value of that particular option. This keyword returns the total turnover of that instrument at the exchange. This keyword is the simplest of all and just returns the number that is input by the user.

Weighted moving averages assign a heavier weighting to more current data points since they are more relevant than data points in the distant past. This is a price action keyword which will calculate the instantaneous VWAP of the instrument under consideration. VWAP needs to be used for an instrument which has volume data.