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Awesome_oscillator

How to Use Trading Zones in CryptoHello, Skyrexians! Last two articles were the deep dive into the Awesome Oscillator and Acceleration Deceleration indicators by Bill Williams. In conjunction with the fractals and the alligator these indicators are the powerful concept in cryptocurrency trading. It can significantly boost your cryptocurrency trading strategy, crypto trading algorithm or you can implement it into trading bot. Today we will expand this concept with the trading zones - the periods on the market with the bullish or bearish superiority. Trading zones is not the popular concept in comparison to Awesome Oscillator, that's why using it can give you a huge advantage in crypto trading because even top crypto traders don't use it in their trading routine. Let's go through its concept. Before start observing the trading zones concept we have to understand what are the Awesome Oscillator and Acceleration/Deceleration. Awesome oscillator is the approximation of the market's driving force. Usually it starts moving before the price if this is an impulsive wave. During corrections it can flash the false signals. Before the driving force starts moving the acceleration changes its direction. That's why combination of these indicators is so important. What is the trading zone? As you know from AO and AC descriptions they can have 2 conditions: increasing (greed bars) and decreasing (red bars). According to this we can define 3 marker conditions: Green zone. Both AO and AC have the increasing columns. This is the strong bullish phase. Only long trades are allowed. Red zone. Both AO and AC have the decreasing columns. This is the strong bearish phase. Only short trades are allowed. Gray zone. AO and AC have the different directions. No signals can be generated by this trading zone
Education
by Skyrexio
Deep dive into Awesome OscillatorsHello, Skyrexians! We continue our series of educational content. Today it's time to consider the Awesome Oscillator, the indicator introduced by Bill Williams in his book "Trading Chaos". It can be very useful in your crypto trading. A lot of crypto trading strategies use this indicator. You can combine it with other indicators to create your crypto trading algorithm, trading bot or manual cryptocurrency trading strategy. Most of top crypto traders and top crypto trading platforms use it in their automated crypto trading. If you will be aware you to trade using Awesome Oscillator will be able to enhance your automated trading bot, manual trading strategy or setup grid trading bot more effectively. We think there is enough arguments to learn how to use this indicator. Let's start our deep dive! What is Awesome Oscillator? The Awesome Oscillator (AO) is a momentum indicator used in technical analysis to measure the strength and direction of a market trend. It was created by Bill Williams and is designed to help traders identify potential reversals or trend continuations. Key Features of the Awesome Oscillator: Momentum Measurement: The AO measures the difference between a short-term moving average and a long-term moving average, using midpoints of each candlestick rather than closing prices. This provides insights into the market's momentum. Histogram Representation: The indicator is typically displayed as a histogram, with bars oscillating above and below a zero line. Green bars represent increasing momentum (bullish), while red bars indicate decreasing momentum (bearish). The Awesome Oscillator is calculated using simple moving average(SMA) as follows: AO = SMA(5-period) − SMA(34-period) Now let's consider the signals which can be produced by Awesome Oscillator with the examples.
OANDA:XAUUSDEducation
by Skyrexio
BLUR - 3D bullish divergence I will keep it simple for this one. There is a bullish divergence forming od D3 for BLUR, both on RSI and AO. The same divergence formed on CRV a few days ago, and CRV pumped 20% in a day shortly after, making it one of the best performers of the day/week. The fact that both RSI and AO are forming the same divergence is a plus In addition they are forming on very high time frames, which is usually a good sign it just means it might take a bit longer to play out. Entered at 0.157, which is also a big support level. Target is range high at 0.22ish Happy trading
Long
by Retrace_all_gains
3
Are You Ready For Crypto Bear Market???DONT FORGET TO CHECK MY PREVIOUS ANALYSIS, #Bitcoin i believe bitcoin had enough of bullish retracement and its time to continue the main direction which is for sure bearish. i have pointed out the main zones to look out for, the chart speaks much than i have to... + Dont Forget To Match With Your Strategy. Like + Comments Will Be A Big Support. Disclaimer: Buying OR Selling is your own decesion. This is just my personal view of the market for educational purposes.
OANDA:BTCUSDShort
by IchimokiFx
2
LCID Lucid Cup and Handle Short then LongFSR has formed the cup of the cup and handle pattern and is now starting the downturn formation of the handle. Price action should continue down to the 50% retracement of the uptrend of the cup. It should then reverse and trend upward to twice the height of the cup/ AO /MACD / RSI confirm the downtrend. I will target this with the $8.50 strike put options expiring 3/10 and then upon hitting the full retracement close than position and open $9.50 call options expiring 3/17. Overall, expecting 200-300% realized profit on the trades. Not at all a surprise but FSR / Fisker has the same pattern and so a similar idea.
NASDAQ:LCID
by AwesomeAvani
3
BTCUSD Daily overview on bearishness signsBTCUSD reached supply as it touched the Anchored VWAP at the 2022 high (@alphatrends insight), rejected the 23,000 price area after rising to 23,062 USD, which could be seen as a bull trap and a false breakout of the mother of all trendlines from ATH. This strong resistance combines the major trendline and the VWAP with a neckline of the 2021 bottom. Price action broke this dynamic trendline on June 13, 22 and tested it on August 15, 22; yesterday tested it and failed to break once again. From the point of view of chart pattern analysis, we can consider a massive and complex Head and Shoulders formation in the retracement phase up to the neckline, which can be considered as a partial validation signal, which can arouse more interest on the bear side. Key level for new short positions. If we double down on the head range, we might see a confluence with a Fibonacci retracement from the low of Friday-13-Mar'20 for the ATH, which the 88.6% level calls the 11.4k. Also, from a technical analysis point of view, we have a rare case of bearish divergence on this daily chart, on the RSI (not shown on this chart, but below), OBV, CCI and Chaikin Money Flow and Chaikin Oscillators. Awesome Oscillator analysis on H4: Ehlers Smoothed Stochastic plus Sctochastic Divergence H1 chart: Looking closely, if the price loses local support on a pullback in the regression channel, it is possible that we will see a pullback at least to the breakeven level in the 19k-18k range soon, for a correction of the imbalance. Price action may react positively as bulls identify this area as a buy zone. The lower deviation of the Regression Channel calls the 14k sublevel. Therefore, I see a high possibility that the price will hit the demand zone at 16k sub-levels in a corrective wave. On the other hand, if price holds 17k making a higher low, a sharp pullback could send the price action into a large contraction (triangle) formation. Intraday Triangle: Looking to the daily chart of TOTAL top 125 crypto-coins market cap we can see that the price pulled back to test the upper trendline of a bearish pennant: Psychologically, I think long-term buy-and-hold institutions may have an interest in voluntarily distributing this high level to spot traders so they can buy cheaper. Therefore, any pullback in the area of interest will be massively used by moonbois to inject liquidity. We are at a key point where market sentiment could turn from neutral to bearish. And the best choice, IMO, is to get ahead in short positions. But the scenario can only materialize with the definitions from the opening of the US Stock markets and a reversal from DXY. Mainly, I should keep an eye on S&P500 ES futures. This is merely a technical analysis to improve studies of hypothetical scenarios and not a financial advice. Best regards, Thiago Oliveira @firmestudio
BITSTAMP:BTCUSDShort
by firmestudio
11
LINKUSDT 2-top, H&S, Butterfly; pullback to necklineLINKUSDT 2-top, H&S, Butterfly; pullback to neckline After a retrace from the Stocks Market, LINKUSDT presents a perfect price action in bearish confluences after exit of a ascendent broadening bottom. We can see a Head and Shoulders in process now, exactly pull-backing to neckline, in a potential Double Top pattern. The prior swing before this pullback fitted 50% of a potential CD-leg of a Butterfly Harmonic Pattern. We can expect a 2nd downward from the neckline which is the weekly volume point of control (POC), strong resistance. A 1st short-term-target has been applied on an AB=CD projection. The 14.6% Fib level is my key level to put targets. Plus hidden bearish divergences on 1H chart w/ Ehlers Stochastic, Awesome Oscillator and Chaikin Money Flow. Definitely bearish.
Short
by firmestudio
1
Long HOG above 40.87HOG just broke the latest daily fractal of 39.14 to the upside. Entry 1 above this price. Adding 5 when and if price goes above the weekly fractal of 40.87. Remember that the Alligator tells us when to enter and exit. Stop loss is the Alligator's Teeth (red line). It is also the last exit point when the trend ends. First exit may be the lowest low of the fifth consecutive green bar (zone bar). Chart shows only last short position, which was closed and reversed to the upside.
NYSE:HOGLong
by ownsov