Awesome Oscillator

Awesome Oscillator

Based on the simple subtraction of two averages of many trading stations and trading logic integrated Awesome Oscillator. In principle, it is simple is a moving average oscillator, it is thus a subtraction of two moving averages with different period details. In contrast to the known approach of this group, the MACD, moving averages, which are exponential use of the Awesome Oscillator is based on two simple moving averages. The average time (default value 34 periods) is the short (default is 5 periods) is subtracted, the result gives the comparison of two averages with different time horizons primarily valuable information about the momentum of the market.


As already noted, the most valuable information, which provides us with the approach, a measure of the market momentum indicator dar. Increasing values ​​can be equated with a growing market momentum, falling to a slowing. Concrete trading signals can be generated in various ways in which represents the crossing of the indicator with the center line (long section at the top, with short cut down) the most common application option. There are various ways of refining this standard signal, often find bands and channel indicator-based approaches such as Bollinger Bands use. Also quite well known is the so-called saucer signal that by changing the direction of the indicator is triggered. For example, the oscillator is below the center line, it first needs a period of rising and then falling to identify a short signal. The logic of a long signal is likely to open up to the reader. In summary, it is noted that the presented approach can provide very useful insights, the inertia of the approach due to the comparison of two moving averages must not be forgotten (Awesome follows the actual market development with some delay!).