Metatrader Indicator Awesome Oscillator (AO)
Awesome oscillator technical indicator shows clearly what is happening to the market driving force at the present moment?. Awesome oscillator is formed using the difference between the 34-period and 5-period simple moving averages of the midpoints of bars (H+L)/2. Awesome oscillator shows the picture of what is happening to the market conditions by plotting through bar charts in the middle of the charts for proper indications of market performance.
Signals to buy
Saucer
When the bar chart is higher than above than the nought line, it’s a signal to purchase.
- The signal of the saucer is generated when the bar chart reverses its direction from the concave upwards, the second column is red in color and it is lower than the first one. The third column is green in color and it is higher than the second.
- For signal of the saucer to be generated, the bar chart should have at least three columns.
One should keep in mind that all awesome oscillator columns should be above the nought line for the signal to be used.
Nought line crossing
The signal to purchase occurs when the bar chart crosses the zero line in a positive direction. In regard to this signal:
- That is, it passes from the area of negative values to that of positive values.
- Instantaneously the generation of signals to buy and sell is not possible.
- Two columns are necessary for creation of signal.
Two pikes
It is nothing but the only signal to buy which can be generated when the bar chart values are falling below the nought line. The following should be borne in mind:
- Once the signal is generated lowest minimum pike pointed down below the nought line, which should be followed by another down pointing pike, which is closer to the nought line, than the down-looking pike.
- The bar chart well below the nought line is placed between the two pikes. If this is not followed the signal to buy will not function. A different signal may to be developed by nought line crossing.
- Each new pike of the bar chart will be higher than the previous pike positioning.
- By formation of additional pike and the non-crossing of the bar chart with the nought line, an additional signal will be created.
Signals to sell
Awesome oscillator signals are nothing but signals to buy. The saucer signal goes below zero. Nought line crossing becomes a rarity. Two pikes signal is also revered back, even though it may be higher than the nought line.
Calculation
Awesome oscillator is the combination of 5-period and 34-period simple moving average, pivoted across the central points of the bars (H+L)/2.
To conclude awesome oscillator is the indicator for stock markets when to buy and when to sell. Kinds of signals to be generated, how the various movements of stock market are generated and monitored to enable investors not to go weary with wrong purchases, this also enables verification for many investors.
This entry was posted on Tuesday, July 29th, 2008 at 7:39 pm and is filed under metatrader indicator. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
