How to use awesome oscillator in forex trading


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.

How would you use Awesome Oscillator in trading strategy?

The Awesome Oscillator is used to measure market momentum and to affirm trends or to anticipate possible reversals. It does this by effectively comparing the recent market momentum, with the general momentum over a wider frame of reference.

Which indicator works best with Awesome Oscillator?

Awesome Oscillator = Fast Period – Slow Period Williams stated in his book, “It is, without doubt, the best momentum indicator available in the stock and commodity markets. It is as simple as it is elegant. Basically, it is a 34-bar simple moving average subtracted from a 5-bar simple moving average.”

Which oscillator is best forex?

5 Best Trading Oscillator Indicators to Find Market EntriesStochastics. … Relative Strength Index (RSI) … Commodity Channel Index (CCI) … Moving Average Convergence Divergence (MACD) … Awesome Oscillator (AO)

How does the awesome indicator work?

The idea behind the Awesome Oscillator is simple. Basically, the indicator is a moving average crossover. A 34-period simple moving average is subtracted from a 5-period simple moving average. Both lines are built across the bars’ midpoints instead of closing or opening prices.

Which is better MACD or awesome oscillator?

AO uses the 34-period and 5-period simple moving average. The MACD indicator uses 26-period and 12-period exponential moving averages along with the 9-period signal line. Using the exponential moving averages would mean that MACD can react quicker compared to the Awesome Oscillator.

Which oscillator is best for day trading?

The 7 Best Oscillators You Can Use in Day TradingMACD.Relative Strength Index (RSI)Stochastic Oscillator.Chande Momentum Oscillator (CM)Commodity Channel Index (CCI)DeMarker Indicator.Awesome Oscillator.

Is scalping a good strategy?

Scalping can be very profitable for traders who decide to use it as a primary strategy, or even those who use it to supplement other types of trading. Adhering to the strict exit strategy is the key to making small profits compound into large gains.

What is pretty good oscillator?

What is Pretty Good Oscillator. The “Pretty Good Oscillator” (PGO) by Mark Johnson measures the distance of the current close from its simple moving average of period average, expressed in terms of an average true range (see Average True Range) over a similar period.

Is RSI or Stochastic better?

The Bottom Line. While relative strength index was designed to measure the speed of price movements, the stochastic oscillator formula works best when the market is trading in consistent ranges. Generally speaking, RSI is more useful in trending markets, and stochastics are more useful in sideways or choppy markets.

How do you read an oscillator?

1:186:58Oscillator Indicators: Beginner Tips – YouTubeYouTubeStart of suggested clipEnd of suggested clipSo the 70%. And then 30% down here so four oscillators that read between zero and a hundred percentMoreSo the 70%. And then 30% down here so four oscillators that read between zero and a hundred percent in value anything above 70 the market is said to be overbought.

How is the Awesome Oscillator calculated?

Awesome Oscillator is a 34-period simple moving average, plotted through the central points of the bars (H+L)/2, and subtracted from the 5-period simple moving average, graphed across the central points of the bars (H+L)/2. Where: SMA = Simple Moving Average.

How do you read an ultimate oscillator?

The Ultimate Oscillator is a range-bound indicator with a value that fluctuates between 0 and 100. Similar to the Relative Strength Index (RSI), levels below 30 are deemed to be oversold, and levels above 70 are deemed to be overbought.

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