Alligator is a technical analysis tool consisting of three smoothed moving averages with periods of 13, 8 and 5, which are all Fibonacci numbers overlaid on a price chart. The lines represent the jaw, the teeth and the lips of the alligator. This indicator is used to determine the trend and predict its future direction. The Alligator indicator works best when combined with an oscillator-type indicator such as the Fractals indicator. The Fractals are recurring patterns that can predict reversals among larger, more chaotic price movements.

A potential BUY opportunity is identified when the price is trending up (Lips are above the Teeth and the Teeth is above the Jaw) and the DOWN fractal is formed above the teeth of the alligator.