The Alligator indicator is a technical analysis tool created by trader Bill Williams. It is designed to help traders identify the start and end of a trend, as well as the direction of the trend. The indicator is composed of three lines: the blue line, known as the "jaw", represents the moving average of the last 13 periods; the red line, known as the "teeth", represents the moving average of the last 8 periods; and the green line, known as the "lips", represents the moving average of the last 5 periods. When the lines are intertwined, the market is considered to be in a state of balance or consolidation. When the lines separate and move in the same direction, it is considered a signal to enter or exit a trade in the direction of the trend.