1. Alligator’s Jaw (Blue Line):
   A 13-period moving average smoothed by 8 periods, reflecting the long-term market direction.
2. Alligator’s Teeth (Red Line):
   An 8-period moving average smoothed by 5 periods, aligning with the medium-term trend.
3. Alligator’s Lips (Green Line):
   A 5-period moving average smoothed by 3 periods; faster to react and represents short-term movement.

1. Sleeping Alligator:
   Lines are intertwined; market is ranging/sideways. Many traders wait for clearer direction.
2. Waking Alligator:
   Lines start to separate; a new trend may begin. Traders look for entries in the breakout direction.
3. Feeding Alligator:
   Lines fan out strongly; trend is established. Many traders hold positions during this phase.
4. Sated Alligator:
   Lines converge again; momentum fades. Consider taking profits or preparing for reversal/consolidation.

1. Identify the Trend:
   Wide, aligned lines suggest a strong trend; intertwined lines suggest consolidation.
2. Enter When It Wakes Up:
   Use the initial separation as an entry signal in the direction of emerging trend.
3. Hold During Feeding:
   As separation widens, many traders hold to capture the trending move.
4. Exit When It Falls Asleep:
   Convergence indicates waning momentum; consider exiting or tightening risk.

1. Fractals:
   Use Williams Fractals to mark potential reversal points and confirm entries/exits.
2. Momentum Indicators:
   RSI or MACD can confirm trend strength alongside Alligator alignment.
3. Volume Analysis:
   Higher volume on breakouts supports the 'waking' phase and trend validity.

After a consolidation where Jaw, Teeth and Lips are intertwined, the Lips cross above Teeth and Jaw and the lines begin to separate, signaling a potential bullish trend.

As the spread widens (feeding phase), a long position is held. When lines converge again, consider exiting to secure profits before a possible reversal.

1. Clear Trend Signals:
   Easy visualization of phases for entries/exits.
2. Works Across Timeframes:
   Useful for forex, stocks and commodities on multiple horizons.
3. Compatible with Other Tools:
   Pairs well with Fractals and momentum indicators.

1. Lags in Fast Markets:
   Smoothed MAs can delay signals in high volatility.
2. False Signals in Ranges:
   Whipsaws may occur in low-volatility, sideways conditions.

An ideal setup shows the three lines tight (consolidation), then fanning out as the trend begins.

During 'waking'/'feeding' phases, entries and holds are favored; convergence suggests taking profits or caution.