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Its main advantage is being subject to the same laws of technical analysis as price charts. The ASI is much smoother than a price chart, easier to analyse and avoids false signals. The bar colours of the Awesome Indicator are based on indicator values within a certain period. Thus, it is possible to have red bars above zero, and green bars below zero. A rising green histogram indicates that the Awesome Oscillator value is higher than the previous bar, whereas a falling histogram indicates that Awesome Oscillator value is lower than the previous bar. By definition, the Awesome Oscillator is a 34-period simple moving average subtracted from a 5-period simple moving average.

The below chart shows how green lines indicate bullish momentum and red lines indicate bearish momentum on a price chart. That’s right folks, not an EMA or displaced moving average, but yes, a simple moving average. The awesome oscillator is available to use on our award-winning online trading platform, Next Generation. We offer a wide range of tradable assets to practise your awesome oscillator strategies, along with other momentum and trend indicators.

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Providing data is voluntary, but necessary for the conclusion of the agreement of information and educational service. Symbol name on the data of which the indicator will be calculated. First, if you shorted the opening spike, similar to our Papa John’s example, this would have caused you serious pain. Next, EGY spikes lower giving the impression the stock was going to fill the gap.

The best pairing is to combine the Awesome Oscillator with the Stochastic Oscillator. The two are complimentary and will confirm changes what is a margin call in momentum. Other good combinations are with the Relative Strength Index or with the Moving Average Convergence/Divergence .

Combine with other indicators

The Timing custom indicator line turn yellow and/or moves into the 70 – 100 area , an exit or take profit should set in. The indicator displays a Buy signal when the figure is formed by two consecutive pikes both of which are below the naught line and the later-formed pike is closer to the zero level than the earlier-formed one. The Saucer method looks for changes in three consecutive bars, all on the same side of the Zero Line.

At the same time if one of the first 2 green bars punches the zero line, then it is already possible to buy on the third bar. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or how to install sql server developer edition copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours.

Awesome Oscillator Indicator Strategies

As mentioned above, the first approach of using the indicator is to look at the neutral line. In most cases, a bullish signal is usually sent when the awesome oscillator moves from the bottom and crosses the neutral line. The awesome oscillator is an indicator that works by comparing the recent movements in an asset with the historic trends. Like all oscillators, it works by having a centreline or the neutral line and other lines.

Creating a theoretical understanding and contextualizing what you are doing with a general understanding of the market mi provide you with an edge that other traders do not have available to them. The awesome oscillator, like all oscillators by Bill Williams, is an excellent trading indicator that can be learnt within a short period. Get comprehensive and relevant education and trading resources on how to apply the Awesome Oscillator and many other technical trading strategies when trading your favourite assets. Because it plots the difference between a fast-moving and slow-moving average, the Awesome Oscillator prints both negative and positive values.

Basic Awesome Oscillator Trading Strategies

A bullish twin peak happens when there are two consecutive peaks below the neutral line. In this case, the second peak should be higher than the initial one. Therefore, a bullish view emerges when the bars turn green below the neutral line and is then confirmed when it rises above the neutral point. The chart below shows the awesome oscillator applied in the daily chart of the EUR/USD pair. Has plenty of features such as Lot/Risk Management, Filtering trades and Reverse Trading, Lifetime Support.

• Any short trader would have had enough reason with the negative news on Papa John’s founder at the time to short the morning pop.
• During our trade, we should watch for signs that align with our directional plan.
• It was developed by American technical trader, Bill Williams, and measures the acceleration and deceleration of the current driving force.
• By its interpretation, AC is one of the simplest indicators, practically, you can track only the change in color of the histogram bars and make the right decisions.

Ideally, when the line is above the zero line, it is usually a sign that the price is bullish. Similarly, when the line is below the neutral line, it is usually a bearish sign. However, as with all indicators we have looked at before, there is no guarantee that the price will start rising immediately the oscillator moves above zero. The exploration of three measurements of the Bill Williams analysis will allow the trader not only to earn money but also to accept the market as a natural structure with unnecessary emotions and feelings. You will learn fast analysis and be able to work with various currency pairs and contracts with time.

FOREXLIVE™ may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers. During our trade, we should watch for signs that align with our directional plan. Get tight spreads, no hidden fees, access to 12,000 instruments and more. Get tight spreads, no hidden fees and access to 12,000 instruments. By pressing the “Accept” button, you agree to our Privacy policy. Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.

• Stochastic is set with parameters Accelerator Oscillator, AC oscillator standard.
• Indeed, the indicator is relatively similar to the moving average convergence divergence .
• The Accelerator Oscillator is an indicator which fluctuates around a median 0.00 level which corresponds to a relative balance of the market driving force with the acceleration.
• Gradually it will start to slow down until it stops for a fraction of second and changes its direction to the opposite one and its accelerator starts to grow again.
• Green bars represent ‘ups’, where the awesome oscillator’s value is greater than the previous bar, and the red bars represent ‘downs’, where the value is lower than the previous bar.

​ is a strategy where traders take advantage of small and frequent price movements within volatile markets, with the aim of making a profit. Their positions tend to last for only a few seconds or minutes. When placing an awesome oscillator on your trading chart, you can adjust the timeframe to a much smaller period to reflect this scalping strategy. This helps to make the awesome oscillator an effective indicator for scalping, especially when combined with other indicators, such as Bollinger Bands. The oscillator can provide quick and precise trading signals for the scalper to enter and exit a trade within a matter of moments, giving them potential to profit from a bullish or bearish market. These are particularly rewarding within the forex market, when trading currency pairs.

Charts

A common awesome oscillator trading strategy is to use the zero-line crossover to interpret signals. As discussed, a bullish crossover occurs when the oscillator crosses above the line, whereas a bearish crossover occurs when the oscillator crosses below the line. These both suggest a possible reversal against the previous price trend. If an asset’s price decreases below the zero line, traders may be more likely to open a short position, instead of a long position, which may be more favourable when the price starts to increase to above the zero line. For example, when the oscillator crosses above or below the zero line, this is not seen as a trading signal, but instead simply shows signs of bullishness or bearishness. The gbp to nzd exchange rate today helps traders to detect positive and negative values in order not to enter trades that do not look promising.