Williams Alligator Spread Oscillator (WASO)

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Short description (About box)

Williams Alligator Spread Oscillator (WASO) converts Bill Williams’ Alligator into a 0–100 oscillator that measures the average distance between Lips/Teeth/Jaw relative to ATR. High = expansion/trend (default), low = compression/range — making sideways markets easier to spot. Includes adaptive normalization, configurable thresholds, background shading, and alerts.

Full description (Description field)

What it does
The Williams Alligator Spread Oscillator (WASO) transforms Bill Williams’ Alligator into a single, adaptive 0–100 scale. It computes the average pairwise distance among the Alligator lines (Lips/Teeth/Jaw), normalizes it by ATR and a rolling min–max window, and smooths the result. This makes the signal robust across symbols and timeframes and explicitly improves detection of sideways (ranging) conditions by highlighting compression regimes.

Why it helps

Sideways detection made easier: Low WASO marks compressed regimes that commonly align with consolidation/range phases, helping you identify chop and plan breakout strategies.

Trend/expansion clarity: High WASO indicates the Alligator lines are widening relative to volatility, pointing to trending or expanding conditions.
You can flip the direction if you prefer “High = Range.”

How it is calculated (plain English)

Smooth price with RMA (SMMA-like) to get Jaw, Teeth, Lips.

Compute the average pairwise distance between these three lines.

Divide by ATR to remove price-scale effects.

Normalize with a rolling min–max window to map values to 0–100.

Optionally apply EMA smoothing to the oscillator.

Key settings

Jaw/Teeth/Lips Lengths: Alligator periods (SMMA-like via ta.rma).

ATR Length: Volatility benchmark for scaling.

Normalization Lookback: Longer = steadier; shorter = more responsive.

Smoothing (EMA): Evens out noise.

High Value = Large Spread (Trend): Toggle to invert semantics.

Upper/Lower Thresholds: 70/30 are practical starting points.

Signals / interpretation

Sideways / Compression (easier to spot):

Default direction: WASO below Lower Threshold (e.g., <30).

With inverted direction OFF: WASO above Upper Threshold (e.g., >70).

Trend / Expansion:

Default direction: WASO above Upper Threshold (e.g., >70).

With inverted direction OFF: WASO below Lower Threshold (e.g., <30).

Midline (50): Neutral zone; flips around 50 can hint at regime shifts.

Alerts included

Range Start (sideways/compression)

Trend Start (expansion/trend)

Notes & limitations

This implementation omits the classic forward shift of Alligator lines to keep signals usable on live bars.

If market behavior shifts (very quiet or very volatile), tune Lookback and ATR Length.

Combine WASO with breakout levels or momentum filters for entries/exits.

Credits & disclaimer

Inspired by Bill Williams’ Alligator.

For educational purposes only. Not financial advice.

Release Notes (v1.0):

Initial release of Williams-Alligator Spread Oscillator (WASO) with ATR-based scaling and adaptive 0–100 normalization.

Direction toggle (High = Trend by default), adjustable thresholds, background shading, and two alert conditions.

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Phát hành các Ghi chú

Overview

The Williams-Alligator Spread Oscillator (WASO) quantifies expansion and compression phases derived from Bill Williams’ Alligator.
It measures the average distance between the Alligator’s Jaw, Teeth, and Lips, normalized by ATR and mapped to a 0–100 oscillator.

• High values (above 70) → potential trend/expansion phase
  
• Low values (below 30) → potential range/compression phase
  

Update v1.1 – Visual Refinements

• Range/compression background changed from green → neutral gray for better readability.
  
• Added yellow histogram highlight when the oscillator drops below the upper threshold (early trend-weakening zone).
  
• Default parameters unchanged (Jaw 8 / Teeth 6 / Lips 2 / ATR 12 / Lookback 30 / Smoothing 3).
  
• The Alligator lines shown in preview images come from the original Williams Alligator indicator and are not part of this script. They are displayed only to improve visual understanding of the WASO behavior.
  

Recommended companions

Combine WASO with other Williams-style indicators for full market context:

• 🐊 Williams Alligator – to visualize Jaw/Teeth/Lips expansion
  
• 💧 MFI (Money Flow Index) – to confirm momentum via volume strength
  
• 📉 Williams %R – to identify overbought/oversold zones within a regime
  

Usage

• Detect early transitions from compression → expansion.
  
• Confirm direction and strength with Alligator + MFI + %R.
  
• Use WASO as a context / regime filter, not a direct entry trigger.
  

Legal & Attribution

Original implementation inspired by Bill Williams’ Alligator concept.
No proprietary or third-party code copied.
Educational use only – not financial advice.