Gator Oscillator

Parameters: jaw_period = 13 (10–30) • jaw_offset = 8 (5–15) • teeth_period = 8 (5–20) • teeth_offset = 5 (3–10) • lips_period = 5 (3–10) • lips_offset = 3 (2–5)

Overview

The Gator Oscillator, developed by Bill Williams, is a histogram-based complement to the Alligator indicator that visualizes the degree of convergence and divergence between the Alligator's three balance lines. Williams observed that markets trend only 15-30% of the time, spending the rest in consolidation. The Gator Oscillator brilliantly displays these market states through dual histograms that expand and contract like a gator's jaws, making it clear when to trade aggressively or stay out of the market.

The indicator creates two histogram sections: the upper histogram shows the absolute difference between the Jaw and Teeth lines, while the lower histogram displays the negative absolute difference between the Teeth and Lips lines. Each bar is colored green when expanding (stronger trend) or red when contracting (weakening trend), providing immediate visual feedback about market momentum. This color-coded system identifies four distinct market phases: sleeping (dormant), awakening (beginning trend), eating (strong trend), and sated (trend exhaustion), allowing traders to time their entries and exits with the market's natural rhythm.

Interpretation & Trading Signals

Four Market States:

  • Sleeping (Both bars red): Market dormant, lines converged - avoid trading
  • Awakening (Different colors): One bar green, one red - trend starting
  • Eating (Both bars green): Strong trend in progress - ideal trading conditions
  • Sated (One turns red): Trend exhaustion beginning - prepare to exit

Trading Signals:

  • Entry Signal: Large green bar appears during awakening phase
  • Trend Confirmation: Both histograms green with growing amplitude
  • Exit Warning: First red bar appears after eating phase
  • Volatility Gauge: Larger histogram values indicate higher volatility

Calculation Method:

  • Upper Histogram: |Jaw - Teeth| (absolute difference)
  • Lower Histogram: -|Teeth - Lips| (negative absolute difference)
  • Green Bar: Current bar magnitude > Previous bar (expanding)
  • Red Bar: Current bar magnitude < Previous bar (contracting)

Example Usage

Code examples will be available once the Rust implementation is complete.

Performance Analysis

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