An Introduction to Awesome Oscillator Indicator

For the measurements of dynamic momentum, traders use Awesome Oscillator which they believe is an indicator that can't disappoint.

AO is just like every other indicator, but it focuses on comparing momentum using the candlesticks of the last 5 with additional momentum of the last 34 candlesticks for a higher timeframe.

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Awesome Oscillator (AO) Indicator

It is an indicator that was created by a great man named "Bill Williams", with the a of providing traders the tools they can use to measure any trading momentum in the crypto or forex market.

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It is an indicator that is plotted at the bottom be it on a trade, Tradingview, or any trading platform. At the bottom of the indicator, you will see a zero line which is similar to that of Oscillators.

As we have read earlier AO makes use of the 5 simple moving average (SMA) and 34 SMA when carrying out the calculation of the indicator. In addition to this AO collects the difference between two moving averages and plots them together in a histogram as you can see from the screenshot image.

In this indicator, SMA is not used when you are ca lculating the closing price of an asset, but you can use it and Calculate the midpoint of all the candlesticks one by one.

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Awesome Oscillator (AO) on Tradingview

Applying this indicator in Tradingview is very simple because it is the same way you have been using to add every other indicator that you can still use and apply this indicator to your chart and know the momentum of the market.

For the benefit of those who don't know how to add an AO Indicator, open your Tradingview click on Indicator at the top right corner, and search the name of the indicator in the search box.

After you have searched and seen the Awesome Oscillator Indicator just click on it once and close the search you will see the indicator on the chart.

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As the indicator parameters are already specific, I don't think you need to make a change, but should in case you fill in you can go to settings and make the changes.

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Reading Awesome Oscillator Indicator

When you apply AO you will notice that it provides you with different signals which all are for price corrections and reversal.

One thing you should know is that AO fluctuates around the zero (0) line, and if it rises above the zero (0) line, it means a bullish signal, but if it drops (fall) below the zero (0) line then it means it is bearish signals which you can observe from the screenshot below.

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In a situation when you see that AO has formed two highs that are above zero (0) line and the trough that is between them is also above zero (0), it is an indication of a bearish signal. Why this, is because the second peak must be lower or closer to zero 0 than that of the first peak and should be accompanied by a red bearish candle.

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The opposite of what we have just said is for bullish signals, which means the second peak must be higher or closer to zero 0 than that of the first one and it should be accompanied by a green candle.

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Conclusion

_{Today we have learned about the awesome Oscillator Indicator which was created by Bill Williams to help you measure momentum in the market. Whatever you have read, here is not investment advice or a word of encouragement telling you to start using AO. Everything we have shared here is for educational purposes.}