The three moving averages comprise the Jaw, Teeth, and Lips of the Alligator, opening and closing in reaction to evolving trends and trading ranges:
- Jaw (blue line) – starts with the 13-bar SMMA and is smoothed by eight bars on subsequent values.
- Teeth (red line) – start with the eight-bar SMMA and is smoothed by five bars on subsequent values.
- Lips (green line) – start with the five-bar SMMA and smoothed by three bars on subsequent values.
TECHNICAL APPLICATION CHART – USDCAD
The indicator applies convergence-divergence relationships to build trading signals, with the Jaw making the slowest turns and the Lips making the fastest turns. The Lips crossing down through the other lines signals a short sale opportunity while crossing upward signals a buying opportunity. Williams refers to the downward cross as the alligator sleeping and the upward cross as the alligator awakening. JAW IS CRITICAL AND OUR OBSERVATION IS SELL.
Big news ahead and we believe that the news will be in favor for CAD rather USD. We see BOC monetary policy will be bullish and US FOMC is expected to be dovish. fundamentally Canadian Dollar is on the way to recovery as the economy picks up.
Technically its at critical and tipping point @ resistance – be cautious and have a trading plan – proper SL and TP.
Add trades if the price reacts to technical chart in for for sell. Cut loss immediately if it is not in favor for you.
LEARN MORE WITH FINWAZE FOR FREE – CALL SHARON @ 09199104104 FOR FREE 3 DAYS CLASS – You will learn Philippines Stocks/Shares and Global Currencies and also how you leverage the banks in the Philippine to make money.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.