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.