Before we discuss the indicator, let us understand an important concept.
Thread: Alligator indicator
#Alligator #Indicators #Definedge
Before we discuss the indicator, let us understand an important concept.
Moving average at bar B is moving average price of bar A (5 candles behind). This is shifting of moving average price. What does it mean?
https://t.co/WkNxKU9n8u
Let us discuss the Alligator indicator.
Thread:- How Ichimoku indicator is calculated. pic.twitter.com/pM7AZvJjMj
— Prashant Shah (@Prashantshah267) April 15, 2020
Williams suggested Fib numbers 13, 8 and 5 period averages.
The averages are calculated on median price.
Median price = (High + low) / 2.
So, there are three lines plotted on the chart.
13-period MA is shifted by 8 bars
8-period MA is shifted by 5 bars
5-period MA is shifted by 3 bars
So, default parameters of Alligator indicator are 13,8,5 and 8,5,3.
The 13-period MA to 8 (13,8) is called as Alligator’s Jaws.
8-period MA to 5, the Teeth and
5-period MA to 3, the Lips.
When three lines are close to each other, the Alligator is sleeping.
If the Lips crosses the Teeth and Jaws upward or downward, the Alligator is waking up.
If Price crosses above or below the three lines, the Alligator is eating.
When three lines are close to each other, there is no clear trend.
When short-term average crosses other two upward or downward, the trend might emerge.
When three lines are trending, and price is above them, then it indicates strong uptrend.
Over a period, market trends roughly 20% – 30% times, it remains in a range rest of the time.
If Alligator sleeps more (long consolidation), it will become hungrier and eat more (Strong trend).
There are two important observations on this indicator which I found useful:
2 – Price low is above three averages and all averages are rising = Strong up trend. Price high is below averages and all averages are falling = strong downtrend.
These readings are also possible using other indicators and charts. Idea was to talk about the concept.
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1/n
Dear @chartmojo
Out of curiosity, just gone through your timeline and prepared a data of your shared tweets in OCT'2020;
You will not believe the following numbers:
Charts shared = 29 (2 excluded due to splits)
Period = 8-oct to 30-oct'20
..
2/n
If min.10k invested on your each design, then
Amount invested in Oct'20 = 2.91 lacs
Present investment value = 4.72 lacs
Maximum drawdown = 9%
ROI = 62% in 200 days
Annualized ROI = 147%
**You ROCK brother**
...
I've prepared a sheet for all your Oct'20 tweets; It was so much learning on the charts as well as on the data-part; Please keep on the good work.
Sheet link:
https://t.co/8BJtMsOkBD
With regards,
Deepak
Dear @chartmojo
Out of curiosity, just gone through your timeline and prepared a data of your shared tweets in OCT'2020;
You will not believe the following numbers:
Charts shared = 29 (2 excluded due to splits)
Period = 8-oct to 30-oct'20
..
2/n
If min.10k invested on your each design, then
Amount invested in Oct'20 = 2.91 lacs
Present investment value = 4.72 lacs
Maximum drawdown = 9%
ROI = 62% in 200 days
Annualized ROI = 147%
**You ROCK brother**
...
I've prepared a sheet for all your Oct'20 tweets; It was so much learning on the charts as well as on the data-part; Please keep on the good work.
Sheet link:
https://t.co/8BJtMsOkBD
With regards,
Deepak
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1/OK, data mystery time.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.
4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.