What is awesome oscillator indicator
Awesome Oscillator Indicator is a multi-tasking indicator that can determine the current trend, find the optimal entry points to the market, divergence and convergence.
The principle of its operation is based on calculating the difference of moving averages with different periods, built on the median price, which is obtained as the arithmetic average of the maximum and minimum values of the price chart. Sometimes the indicator bases its calculations on a typical price when the sum of the price low and high is divided by three.
What tools does the Awesome Oscillator Indicator look like?
Despite its intriguing name, traders do not consider this tool unique, believing that it is not much different from many indicators. Indeed, Awesome is similar to the well-known MACD. However, we can identify some differences.
- Macd focuses on the candle’s closing price, while Awesome Oscillator works on the median price, which is a plus for Awesome indicator since the median price reflects the accurate picture of the market to a greater extent.
- Awesome Oscillator is missing another moving average that Macd has.
- Awesome Oscillator signals market changes faster than Macd. This feature also speaks to the advantages of Awesome indicator over Macd.
Advantages and disadvantages of awesome indicator
How colorful awesome oscillator indicator looks like in the chart
The indicator looks like a colored histogram divided by a zero level and based on two moving averages. Colors help you navigate in the direction of the trend.
We notice that the design is thought out and should not cause significant difficulties for beginners. However, many traders noted that it is more convenient to work not with histogram bars but with curves. Others, on the contrary, are satisfied with everything, and they note greater convenience when working with colors on the chart, unlike Macd, which they prefer to use instead of Awesome oscillator.
How awesome oscillator works
Given that Awesome oscillator is a tool that performs several functions simultaneously, its signals can be divided into several groups.
Awesome oscillator first signal
The first thing you need to know about the signals of this instrument is the interpretation of color indicators. However, the histogram color signal is not a strong indicator of a trend reversal, so it should only be considered when there is any other evidence.
- The red bars show the decrease in the price range.
- Green color indicates an increase in the difference between moving averages.
Awesome oscillator second signal
The second signal is the length of the columns. Depending on their size determine the strength of the trend
- If the value of the columns is small, then there is a lateral movement on the market – a flat or a gradual strengthening of the positions of a new trend.
- When the bars are high, there is a strong trend.
Awesome oscillator third signal
Another serious indicator is the zero level crossing, which clearly indicates a trend change.
Awesome oscillator fourth signal
The fourth type of signal refers the trader to the Price Action technique, which is based on the search for various figures. The main patterns that we find on the chart include:
- Double peak
A saucer is a figure that looks like three columns in the form of a small bowl; that is, two tall ones are located at the edges, and one small one is in the middle. The saucer indicates the best time to buy. For buy signal all the three candles need to be green.
But a variant of an inverted saucer is also possible, which indicates the possibility of sell. The inverted saucer has the following characteristics: the figure is located below the zero level, and all the three candle’s need to be red color.
Awesome oscillator divergence indicator mt4
Double peak – this pattern manifests itself as a very strong reversal signal, which is a sign of divergence. It is easy to find such a signal outwardly: the line of extreme points should diverge from the real price movement on the chart. It is in the discrepancy between the indicator readings and the existing picture of the market that the essence of divergence lies, it portends serious changes in the market.
Awesome oscillator indicator mt4 download
Awesome is included in the standard set of MT4, MT5, so there will be no problems with installation and configuration. So awesome oscillator indicator download is not needed. To activate the indicator, add it to the chart, you need to find the indicator among the Bill Williams instruments through the “Insert” menu. In addition, there is another way to install it – use the hot keys Ctrl + T to open the “Navigator” window, then find the awesome oscillator indicator there and drag it to the chart.
Awesome indicator strategy with Alligator indicator
If you have confusion about how to use awesome oscillator indicator, then follow my systems. I Often use the Alligator indicator and Awesome indicator together. I recommend focusing on the following rules:
To buy, the Awesome oscillator needs to go up, and the Alligator indicator’s lines need to go in the sequence of lips period above teeth period middle and jaws period below.
To sell, the Awesome oscillator needs to go Down, and the Alligator indicator’s lines need to go in the sequence of jaws period above teeth period middle and lips period below.
For this style of trading, it is recommended to use the hourly time frame and highly volatile currency pairs.
Trading strategy based on Accelerator oscillator, stochastic and Awesome oscillator
Buying is optimal when the moving average enters the oversold area and exits it when it breaks through level 20. The awesome oscillator and Accelerator confirm the picture with the appearance of green candles above zero.
To sell, you also need to meet several conditions: the stochastic moving average leaves the oversold zone at level 80, and auxiliary indicators show red bars in the negative part of the chart.
Awesome oscillator indicator pdf
If you feel more confident studying the awesome oscillator indicator formula more handily, like if you want to download the pdf form and save it on your pc and wish to read it later, then just download the pdf version from here. Use it as you want to.
Awesome Oscillator Indicator is a very powerful technical analysis tool, but you need to understand the whole property clearly, and you need to know how to use this indicator in your day trading. If you use this oscillator alone, then there is a high chance that you will end yourself losing huge money. But if you combine this tool with some other powerful tools like stochastic and Accelerator oscillator, then this trio combination can make you great fortune in the trading field.