Trading Awesome Oscillator Signals 2209

issue #37

Here are the best signals to trade with when using the Awesome Oscillator:

1. Zero Line Crossing (ZLC)

This is a straightforward strategy because of the computation of the Awesome Oscillator. A cross above zero confirms that an uptrend has formed, and traders should seek opportunities to place only buy orders in the market[...]

2. Saucer Strategy

The Awesome Oscillator serves ‘Saucer’ buy and sell opportunities using 3 histogram bars as follows:

Preceding condition: a fractal outside the mouth

Buy Signal Conditions

  • The Awesome Oscillator is above zero
  • Two consecutive histogram bars are red (falling)
  • The third histogram bar is green and higher than the second one
  • Place a buy order on the open of the fourth bar

The saucer strategy helps in picking out optimal trade entry points in a and is designed to ensure traders capture trading opportunities when there is a quick change in the price momentum.

NTD Ref: 1 | 2

3. Twin Peaks

This strategy enables traders to pick out high probability contrarian opportunities in the market. The strategy requires that the Awesome Oscillator forms two peaks and a trough,* all on the same side of the zero-line*.

A bullish twin peak will form below the zero-line, with the second peak higher than the first one and followed by a green bar. [...] A bullish twin peak is a signal to place a buy order, [...]

TODO

Merge/integrate with :

Calculating the Awesome Indicator

The formula to calculate the Awesome Oscillator is as follows:

Awesome Oscillator = SMA (MEDIAN PRICE, 5)-SMA (MEDIAN PRICE, 34)

Where:

SMA = simple moving average

Median Price = (HIGH+LOW)/2

Reference

AO on AVATrade.ca

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