We offer our readers another interesting indicator which is called Gator Oscillator (Oscillator by Bill Williams). The distinctive feature of this oscillator is that it is not used independently. The author came up with this oscillator in order to complement the well-known Bill William’s Alligator binary options’ indicator.
Description of Bill Williams Oscillator binary options’ indicator
As we have already mentioned above, the Bill Williams Oscillator binary options’ indicator was developed by a well-known trader, as well as his famous Alligator indicator. In fact, we are considering the simple modification of the Alligator oscillator. And in this case the trend indicator was moved to the oscillators’ category with all the consequences that come with it.
The main task which was designed by the developer for this indicator consists in the need to determine periods when the trend is present or absent on a chart. That said, the author strived to make this indicator show the changes in the situation clearly. In fact, the Bill Williams Oscillator binary options’ indicator provides a trader the invaluable help when it is necessary to determine whether the Alligator sleeps or not.
What does the Gator oscillator turn out to be? As the majority of indicators of this type, it is displayed on a chart in the form of histograms, which can be red or green. If histograms are located higher than the zero level, they will reflect the distance between the Alligator’s jaws and teeth.
If a histogram is located below the zero level, it shows the distance between the Alligator’s teeth and lips. And the coloring to red or green color occurs when the columns appear to be either higher or lower than the previous ones. A red color of a column appears when the column is lower than the previous one. Consequently, the green color of a column appears when the column is higher than the previous one.
Signals of Gator Oscillator indicator by Bill Williams
When the indicator reaches its minimum values, it means that it shows the absolute value of difference between the moving averages with only negative values. That said, both lower and upper extreme points show that the unidirectional movement is present in the market.
When the indicator’s values are located near the zero mark, it means that there is no trend in the market. Technically, as you can see from the description, everything is pretty simple. As for the calculation of the indicator itself, it is very similar to the known MACD indicator. But the differences exist too. For example, the Gator Oscillator binary options’ indicator by Bill Williams doesn’t include the signal line. Also, it can be calculated based on only the absolute values. In addition, you can change the MACD settings, but the settings of the considered indicator can’t be changed. For this reason, you can’t use this indicator separately for trading.
For this reason, as mentioned above, this indicator has to be used together with the Bill Williams Alligator indicator solely. Its signals are used for the confirmation of the Alligator’s signals. For this reason, this Gator Oscillator by Bill Williams can be referred to the category of the secondary filters. Nevertheless, we don’t want to say that this indicator is useless. However, in order to work with it, the special approach and the detailed knowledge of the Alligator binary options’ indicator is needed.