Blue Gator Indicator to Show Consolidation

17. What is Blue Gator?

Blue GatorMar. 5  The Blue Gator is an indicator that can be found within the Hourglass IM Academy tool. It is designed to make it easier for a forex trader to recognize when a market is trending or consolidating. It is a useful strategy for timing your trades.

Personally, the only reason I use Blue Gator is to see when the market is consolidating. At the bottom of the image here, you see a black box with the time & date inside. When you switch from CashTrap to Blue Gator & back again, make sure you have the same time within your strategies.

When candles are within the light blue channel, prices are consolidating. When candles are below the light blue channel, prices are trending downwards. Look for put options.  When candles are above the light blue channel, prices are trending upwards. Look for call options.

Blue GatorTo find Blue Gator, go to Hourglass and click the strategies bar.

 

Green, red & blue lines

In the first chart above you see green, red & blue lines. These are simple moving averages (SMAs) calculated over various time frames for values of the median price. Below is how each line is calculated.

  • Blue Alligator’s jaw: 13-period SMA shifted 8 bars forward
  • Red Alligator teeth: 9-period SMA shifted 5 bars forward
  • Green Alligator lips: 5-period SMA shifted 3 bars forward

To help people relate to the indicator, its condition is compared to an alligator. The alligator can be sleeping, awakeningeating, or sated.

The state of the alligator

The notes below are for people with a different overall trading style than the one I use. Go to my CashTrap post to see my style.

  • When the alligator is sleeping, that means there’s no trend in the market,
  • When awakening, it’s starting to form a trend,
  • When it’s eating, it is continuing the trend,
  • When it’s sated, it’s slowing down.

 

  • Sleeping phase – When the candles are within the light blue channel, the alligator is sleeping. In other words there is no trend and we say prices are consolidating.
  • Awakening phase – When the alligator is awakening, a trend is starting to form.
  • Eating phase – In the eating phase green bars on both sides of the oscillator. This means that the alligator is trending; it is eating. People using this trading should be trying everything they can to keep their position open in order to get as many profits as possible. The moving averages on the Alligator Indicator would be spread wide open and in a good trending slope.
  • Sated phase – The sated phase means that the market is starting to slow down, the alligator is getting full and therefore is sated. The trend may be slowing down or even ending. This is when you go from a couple of green bars above and below the zero line to a mix of colours again. At this point it may be time to take profit.

Related pages

Using the Bill Williams Gator Oscillator

Market Trend with the Gator

If you are in the IM Academy, go to the Dr. Josh Lee & Brandon Boyd’s Blue Gatorrecorded sessions. Search for Blue Gator in the search box. The resulting video will give you a discussion of Blue Gator starting at around the 42-43 minute mark.

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