Alligator’s Jaw
tl;dr
The Alligator’s Jaw is the blue line in the Alligator Indicator, and it shows the slowest part of the trend. When the jaw moves in a clear direction, it signals that a trend is starting. A rising jaw suggests an uptrend, while a falling jaw suggests a downtrend.
Definition.
The smoothed moving average of the Alligator indicator, which helps traders identify the start of a trend.
Real-World Example.
The Alligator’s Jaw is one of the key lines in the Alligator Indicator, and it represents the slowest-moving line on the chart. Imagine a real alligator opening its mouth slowly and waiting for the right moment to strike. In trading, the Alligator’s Jaw shows the slowest part of the market’s trend — it’s the first part that starts to move when a new trend is forming.
For example, if the Alligator’s Jaw (the blue line) begins to point upwards and starts to separate from the teeth (red line) and lips (green line), it could signal that a strong uptrend is beginning. On the other hand, if the jaw starts to point down and separate from the other lines, it could suggest the market is entering a downtrend.
How to Use the Alligator’s Jaw.
- Add the Alligator Indicator: First, add the Alligator Indicator to your chart. The jaw is the blue line, and it’s usually the slowest to move, often set to a 13-period moving average.
- Identify Trend Start: When the Alligator’s Jaw starts to move away from the other lines and points in a clear direction, it’s a sign that a trend is forming. A rising jaw typically signals an uptrend, while a falling jaw indicates a downtrend.
- Watch for Confirmation: The jaw moves first, followed by the teeth and then the lips. If the jaw is opening and pointing up, and the teeth and lips follow suit, this indicates a strong upward trend. If the jaw moves downward, and the other lines follow, it shows a potential downtrend.
- Use with Other Indicators: To confirm the trend, pair the Alligator’s Jaw with other tools like Volume Indicators or the Relative Strength Index (RSI). This can help you ensure that the trend is strong before entering a trade.
