Awesome Oscillator

Study of Indicator
Awesome Oscillator
• The Awesome Oscillator (AO) is a histogram-type
indicator designed to measure market momentum. It
was first introduced by Bill Williams. It is used to
determine the momentum of the asset at hand in the
course of recent events within the context of a wider
time frame. The indicator is also used to
confirm/disprove trends and determine possible
reversal points.
Awesome Oscillator
• How does it work?
• The idea behind the Awesome Oscillator is simple. Basically, the
indicator is a moving average crossover. A 34-period simple moving
average is subtracted from a 5-period simple moving average. Both
lines are built across the bars’ midpoints instead of closing or opening
prices.
Zero Line Cross over -Awesome Oscillator
• How to use Awesome Oscillator
This is the most basic and straightforward signal a trader can get when
using the Awesome Oscillator. When the AO crosses above the zeroline,
short-term momentum is rising faster than long-term momentum. In
this case, a zeroline crossover might be considered a buying
opportunity. When the AO crosses below the zeroline, short-term
momentum is falling faster than long-term momentum. This pattern is
considered by some traders as a selling opportunity.
Zero Line Strategy for entry and exist in next slide.
Twin peak Bullish Trend –Awesome Oscillator
• Twin Peaks
• Two consecutive peaks can be used as a trading signal, as well. Twin
Peaks take on the role of the bullish trend messengers when
1) both peaks are below the zero line,
2) the second peak is higher than the first one and is followed by the
green bar,
3) the trough between the peaks stays below the zero line.
Twin Peak formation with Awesome Oscillator
Twin peak Bearish Trend –Awesome Oscillator
• Twin Peaks become a signal of an upcoming bearish trend when
1) both of them are above the zero line,
2) the second peak is lower than the first one and is followed by the red
bar,
3) the trough, in turn, remains above the zero line.
Twin peak Bearish break our
Saucer formation in Awesome Oscillator
• Saucer is another signal that can be used for early trend forecasting. It
follows the changes in three consecutive bars.

Bullish Trend
When the Awesome oscillator is above zero and two consecutive red bars
are followed by a green one, the saucer is considered to be bullish.

Bearish Trend
When the Awesome oscillator is below the zero line and two consecutive
green bars are followed by a red one, the saucer is defined as bearish.
Awesome Oscillator
• Gives you 100% correct signal of bearish and bullish break out
• To earn Rs 2000 daily with the Awesome oscillator
• Open an account
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Add Awesome Oscillator from Studies tab
 Happy Earning
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Next Lesson on Fibonacci.
Thank You