The presented indicator is the author's implementation of the idea embodied in the Alligator indicator, which has already become a classic.
The proposed product allows you to visually demonstrate the direction of price movement, temporary price rollbacks and zones of multidirectional price movement.
Namely:
- The indicator lines go up and diverge from each other - a strong bullish trend;
- The indicator lines go down and diverge from each other - a strong bearish trend;
- The indicator lines go up but converge together - a weakened bullish trend;
- The indicator lines go down but converge together - a weakened bearish trend;
- The indicator lines are tangled into a tight knot - multidirectional price movement.
Also, the main line of the indicator is a strong dynamic support/resistance line that can be used as a guide when placing protective stop orders.
The indicator has only two adjustable parameters (smoothing, shift) which simplifies its customization.
