What the Gator Oscillator shows
The Gator Oscillator is a Bill Williams indicator built on the Alligator. The Alligator draws three smoothed moving averages on the price chart: the Jaw (slowest), the Teeth (middle) and the Lips (fastest).
The Gator does not show price. It shows how far apart these lines are. When the lines spread out, the bars grow. When the lines move close together, the bars shrink. Beginners can read it as a gauge of whether the Alligator lines are converging or diverging.
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Formula and default settings
The indicator draws a histogram above zero and a histogram below zero:
- Upper histogram = absolute value of (Jaw − Teeth)
- Lower histogram = −absolute value of (Teeth − Lips)
Each bar is coloured by comparison with the previous bar. Green means the distance grew, and red means it shrank.
The default periods and forward shifts are the same as the Alligator's. You can see them in the indicator's settings window in MetaTrader. If you change the Alligator settings, change the Gator settings the same way, or the oscillator will measure different lines from the ones on your chart.
How to add it in MT4 and MT5
In both MetaTrader 4 and MetaTrader 5:
- Open the menu Insert → Indicators → Bill Williams → Gator Oscillator.
- Check the periods, shifts, method and colours on the Parameters tab.
- Click OK. The indicator opens in a separate window below the chart.
You can add the Alligator from the same menu so that you can see the lines the Gator is measuring.
Reading the phases: a drawn example
The table describes an illustrative sequence. It is not a real market.
| Phase (Williams' name) | Upper bars | Lower bars | Alligator lines |
|---|---|---|---|
| Sleeping | Small, mostly red | Small, mostly red | Tangled, flat |
| Awakening | Colours start to differ | Colours start to differ | Starting to separate |
| Eating | Green, growing | Green, growing | Spread apart, ordered |
| Sated | Turning red | Turning red | Converging again |
The "eating" phase matches a trending stretch. The "sleeping" phase matches a range.
How traders use it
- As a trend-strength context filter, together with trend analysis and market structure.
- To spot range conditions, where trend tools tend to give poor readings.
- Alongside other Bill Williams tools, such as Fractals and the Awesome Oscillator.
A "gator oscillator strategy" is usually one of these filters with other tools added. It does not generate entries on its own.
Where it misleads
- Lag. It is built on smoothed, forward-shifted averages, so phases show up after price has already moved. See leading vs lagging.
- No direction. Both histograms are absolute values. Wide bars can occur in a rise or in a fall.
- Colour noise. Bar colour compares only adjacent bars, so a single small change flips the colour.
- Sharp spikes. News moves can push the lines apart briefly and then reverse, so an "eating" phase can end quickly.
- Timeframe mismatch. Phases on a low timeframe can conflict with phases on a higher one. See multiple timeframes.
For experienced traders, faster settings react sooner but produce more colour flips. Slower settings reduce noise and add lag. Test changes on a demo account before relying on them. Leveraged CFD and forex trading can lose money fast, and no indicator removes that risk. See risk management.
Frequent questions
Is the Gator Oscillator a leading indicator?
No. It is derived from moving averages, so it lags price.
Does it show whether the market is rising or falling?
No. It measures the distance between the Alligator lines, not their direction. Check the direction on the price chart.
Why do my Gator bars not match my Alligator?
The settings probably differ. Use the same periods, shifts and method in both indicators.
Is the Gator Oscillator available in MT4 and MT5?
Yes. It is a built-in indicator under Bill Williams in both platforms.
Can I use it alone?
It does not give entry or exit points on its own. Most traders combine it with price action and technical analysis.