Alligator + Fractals + Divergent & Squat Bars + Signal Alerts

The Alligator + Fractals + Divergent & Squat Bars + Signal Alerts indicator provides a comprehensive trading toolkit based on Bill Williams' Profitunity strategy, combining trend analysis, momentum tracking, and reversal identification. It integrates the Williams Alligator, Fractals, Market Facilitation Index (MFI), and Awesome Oscillator (AO) into a unified signal system for detecting market shifts and trend continuations.

Usage

The tool is designed to identify "Bullish Divergent" and "Bearish Divergent" bars relative to the Alligator's placement.

• Long Signals: A green circle appears above a bar if its high is below all Alligator lines, it closes in the upper half of its range, and its low is lower than the previous two bars.
• Short Signals: A red circle appears below a bar if its low is above all Alligator lines, it closes in the lower half of its range, and its high is higher than the previous two bars.
• Volume Analysis: Bar coloring reflects market energy. Blue bars indicate "Squat" bars (MFI down, Volume up), signaling a potential reversal. Other colors represent trend momentum based on the Awesome Oscillator.
• Trend Transitions: Crossing the Alligator's "Lips" (green line) serves as an early warning for price pullbacks or deep corrections.

Details

This implementation calculates market momentum through the Awesome Oscillator (SMA 5 - SMA 34) and volume efficiency via the Market Facilitation Index (Range/Volume). It automatically detects the 3rd Elliott wave by tracking AO peaks within a 140-bar lookback period. The script also handles fractal detection, requiring five consecutive bars to confirm a local high or low, which then serves as a filter for divergent bar signals.

Settings

• Alligator: Configure the Jaw, Teeth, and Lips periods, offsets, and moving average methods (SMA, SMMA, EMA, etc.).
• Fractals: Adjust the lookback period and filtration intensity (none, medium, high).
• Divergent & Squat Bars: Set filtration levels for signal accuracy and toggle visibility for "Green" (trend continuation) or "Fake" (low interest) bars.
• Awesome Oscillator: Customize fast/slow lengths and calculation methods for divergence detection.
• Interval for Highest/Lowest Bars: Set the bar count for peak tracking and toggle price labels.
• Alerts: Enable granular notifications for crossing Lips, fractal formations, and specific divergent bar setups.

FAQ

• How do I interpret a Squat bar? A Squat bar (colored blue) indicates that the market is reaching a point where high volume is no longer moving the price significantly, often occurring just before a trend reversal.
• What does the filtration setting for Divergent bars do? The filtration setting ensures signals are only shown when they align with fractal structures, reducing "noise" in sideways markets.
• How can I access the Alligator + Fractals + Divergent & Squat Bars + Signal Alerts? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.