Alligator Bands Amibroker AFL Code

In this post, we’ll go through a Alligator Bands Amibroker AFL Code. The AFL code can be downloaded free of cost and imported into Amibroker.

Alligator Bands Overview

The Alligator bands is a technical analysis tool developed by Bill Williams, a famous trader and author. It consists of three lines that are overlaid on a price chart, which are known as the jaw, teeth, and lips. These lines are used to identify potential trend changes and trade signals in the market.

The composition of the Alligator bands is as follows:

1. Jaw (Blue Line): This is a 13-period simple moving average (SMA) that represents the slowest line. It helps to identify the long-term trend direction.
2. Teeth (Red Line): This is an 8-period SMA that represents the intermediate line. It helps to identify the intermediate-term trend direction.
3. Lips (Green Line): This is a 5-period SMA that represents the fastest line. It helps to identify the short-term trend direction.

The significance of the Alligator bands is that they can help traders to identify potential trend changes and trade signals. When the three lines are entwined and moving close together, it indicates that the market is ranging or consolidating. However, when the lines start to diverge, it suggests that a trend may be emerging.

One popular trading strategy using the Alligator bands is to look for “crossovers” between the lines. For example, when the lips cross above the teeth and the teeth cross above the jaw, it may signal a bullish trend. Conversely, when the lips cross below the teeth and the teeth cross below the jaw, it may signal a bearish trend. Traders may also use other technical indicators or price action patterns in conjunction with the Alligator bands to confirm trading signals and make informed trading decisions.

Also Read: Acceleration Bands AFL Code

Alligator Bands Amibroker AFL Download

Please download the AFL code from this link. It can be readily imported into Amibroker.

Alligator Bands Amibroker AFL Screenshot

Check out the screenshot of this AFL below

AFL Explanation

1. First, we define the parameters for the Alligator bands, such as the periods for the jaw, teeth, and lips lines.
2. Next, we calculate the values for the jaw, teeth, and lips lines using the ma (simple moving average) function, which takes the close price and the respective period as inputs.
3. We use the Plot function again to plot the Alligator jaws, teeth, and lips lines using the calculated values. We specify the colors for each line using colorBlue, colorRed, and colorGreen, respectively. We also use styleThick to set the thickness of the lines.

Also Read: Keltner Band Trading System: Amibroker AFL

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