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Forex Awesome Oscillator trading indicator

BWI Awesome Oscillator (phase energy) trading indicator short info
"We now come to the second of our five trading dimensions: the Awesome Oscillator (AO). It is, without doubt, the best momentum indicator available in the stock and commodity markets. It is as simple as it is elegant. Basically, it is a 34-bar simple moving average that is subtracted from a 5-bar simple moving average. It is possible to be a profitable commodity and stock trader using only this oscillator, as we will explain in the next section." Bill Williams. "Trading Chaos" see book... Indicator: Implements 2nd dimention "Chaos trading system" (by Bill Williams) Displays current momentum Shows active trading signals only Easy to customize Has presets

Appearance of the BWI Awesome Oscillator

On the image you can see def ault view of the BWI Awesome Oscillator. (As soon as you have added it to a chart.) BWI Awesome Oscillator has 3 types of signal. It displays them as rectangles with dif f erent sizes and colors.

(appearance, size, color and etc. can be changed by trader by using indicators properties). By def ault all Buy signals are green, Sell blue; Af ter the appearance of a rectangle (any type) trader should wait f or breakout signal (displayed as arrow) and af ter that placing an order or he can place pending order higher/lower at a certain distance f rom maximum/minimum of a bar with rectangle signal. T he Breakout signal will appear when price go higher then bars maximum with a rectangle signal (or lower than bars minimum) on certain number of pips (in the original 1 pips). To show where trader should place a pending order (using new f ractal signal) the indicator draws dotted line. Appearance, colors, distance f rom signal bar maximum/minimum (is used to show breakout signal) and etc. trader can adjust using properties of the indicator.

How to Use - BWI Awesome Oscillator trading signals

How to Use - BWI Awesome Oscillator trading signals filter

General Information about Awesome Oscillator

Awesome Oscillator (AO) - is a 34-period simple moving average, plotted through the middle points of the bars (H+L)/2, which is subtracted f rom the 5-period simple moving average, built across the central points of the bars (H+L)/2. It shows us quite clearly whats happening to the market driving f orce at the present moment. Signals to buy Saucer T his is the only signal to buy that comes when the bar chart is higher than the nought line. One must bear in mind: the saucer signal is generated when the bar chart reversed its direction f rom the downward to upward. T he second column is lower than the f irst one and is colored red. T he third column is higher than the second and is colored green. f or the saucer signal to be generated the bar chart should have at least three columns. Keep in mind, that all Awesome Oscillator columns should be over the nought line f or the saucer signal to be used. Nought line crossing T he signal to buy is generated when the bar chart passes f rom the area of negative values to that of positive. It comes when the bar chart crosses the nought line. As regards this signal: f or this signal to be generated, only two columns are necessary; the f irst column is to be below the nought line, the second one is to cross it (transition f rom a negative value to a positive one); simultaneous generation of signals to buy and to sell is impossible.

Two pikes T his is the only signal to buy that can be generated when the bar chart values are below the nought line. As regards this signal, please, bear in mind: the signal is generated, when you have a pike pointing down (the lowest minimum) which is below the nought line and is f ollowed by another down-pointing pike which is somewhat higher (a negative f igure with a lesser absolute value, which is theref ore closer to the nought line), than the previous downlooking pike. the bar chart is to be below the nought line between the two pikes. If the bar chart crosses the nought line in the section between the pikes, the signal to buy doesnt f unction. However, a dif f erent signal to buy will be generated nought line crossing. each new pike of the bar chart is to be higher (a negative number of a lesser absolute value that is closer to the nought line) than the previous pike. if an additional higher pike is f ormed (that is closer to the nought line) and the bar chart has not crossed the nought line, an additional signal to buy will be generated. Signals to sell Awesome Oscillator signals to sell are identical to the signals to buy. T he saucer signal is reversed and is below zero. Nought line crossing is on the decrease the f irst column of it is over the nought, the second one is under it. T he two pikes signal is higher than the nought line and is reversed too.