Hello ,everyone! The Awesome Oscillator is the very powerful indicator, which can help to define the true market movement direction. Bill Williams used this indicator as part of the Trading Chaos system. He distinguish 3 types of signals. In this article we consider only long signals. Short signals looks like the long signals if you do exactly the opposite....
Bill Williams's Awesome Oscillator Tactic is a promotion plan that takes advantage of the most instantaneous trend. This tactic is similar to our dissolution triangle tactic. This is because it will only give you access signals once the promotion confirms the cost action change. Momentum trading tactics offer traders a simple way to exploit short and medium term...
The Awesome Oscillator (AO) is displayed as a histogram showing the market momentum based on a comparison of the simple moving average (SMA) of the last 5 price bars median to the simple moving average of the last 34 price bars median. MEDIAN PRICE = (HIGH+LOW)/2 AO = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34) When the momentum of the past 5 bars is weak...
Long Trade AO below Zero Line AO creates a Low AO then creates a Higher Low ENTER after AO bar closes Green Short Trade AO above Zero Line AO creates High AO then creates a Lower High ENTER after AO bar closes Red Stop Loss is 1.5 x ATR Take Profit is 1 x ATR 1 - Trade Management 2 - Enter two trades. 3 - SL for both trades will be 1.5 x ATR. 4 - 1st trade TP...