Awesome forex indicator

Awesome forex indicator

Posted: v-tatarin Date of post: 26.06.2017

Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA. If to be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows to see the market momentum.

Unfortunately, besides the word "awesome" there isn't much to be impressed with. Forex markets proved to be too unstable for this indicator. On the other hand, if you're trading stocks, Awesome Oscillator will be more interesting to study, since, unlike with currencies, Stock markets sustain longer more stable trends.

Let's take a look at the Awesome Oscillator in action by simply comparing it to 5 and 34 SMA on the chart. As you can see, the AO mirrors the up and down moves of the 5 SMA in relation to 34 SMA. That's our momentum Up and momentum Down periods. When two SMAs finally cross, the AO also crosses its zero line.

Is AO fast enough to send signals about the market changes and aid us with entries as well as exits? Awesome Oscillator is slow and usually late with signals.

When AO is above zero - only Buy orders should be taken. When AO is below zero - only Sell orders should be taken. The signal to Buy comes when AO histogram forms a series of 3 bars, where: No need to worry about the height comparison.

No need to monitor the height again. Place a pending Buy order above the candlestick which corresponds to the first green bar on the AO histogram. Sell when AO is below zero and there is a series of 3 candles where: Place a pending Sell order below the candlestick which corresponds to the first red bar on the AO histogram.

awesome forex indicator

There are 2 other rules for trading with Awesome Oscillator. Those two methods aren't used very often, but still have the right to exist and be studied. If you like to learn more about divergence, study examples of trading MACD divergence.

Awesome Oscillator (AO) | Awesome Oscillator Strategy | Bill Williams Indicators | IFC Markets

MACD is the most common indicator for studying market divergence. There is a known approach of using Awesome Oscillator AO together with Acceleration Oscillator AC.

Awesome Oscillator - Bill Williams' Indicators - Technical Indicators - Price Charts, Technical and Fundamental Analysis - MetaTrader 5 Help

However, if to look at this combination on practice, the AC does all the work, while AO, well, shows the trend and lags behind.

In the highlighted examples below when the AC changed color from red to money market definition for dummies and vice verse - this was a signal to exit:.

See fractals page for details. Please change awesome forex indicator background how to make money in stocks galgani pdf light grey or light blue.

The black background makes the chart very difficult to read when printed. They do trend as well as stocks, simply with more volatility during their trends. But dolmen securities cantor fitzgerald must look at the longer time frames to see this.

Compare awesome forex indicator 1h to a 4h or Daily to a Weekly chart and you'll see what I mean. I just discovered your website, and I'm very impressed that I can understand and apply the concepts in my future trades.

I change the fast sma from 5 to 4. It becomes one of the most reliable indicators for confirming not signalling a buy or sell signal condition generated by other indicators. The oscillator must be green or above zero for long and red or below zero for a short order.

It's a little slow sometimes on reversals but very accurate for confirming trends for continuation signals. It filters out a lot of the noise very well. What is an Acceleration Oscillator? How is it computed? You refer to it, and illustrate it in the last screen shot of the Awesome Oscillator.

Great Forex Strategy: Accelerator Oscillator & Accumulation Distribution Indicators

Awesome Oscillator indicator Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA. What's "awesome" about the Awesome Oscillator? That said, there are questions to be asked: Practical use of Awesome Oscillator General rules: Combining AO with other indicators There is a known approach of using Awesome Oscillator AO together with Acceleration Oscillator AC. In the highlighted examples below when the AC changed color from red to green and vice verse - this was a signal to exit: Excellent trading indicators, they are working very nice with any time frame thank you What is the AC looking at?

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