
Trading the Awesome Oscillator
The Awesome oscillator was developed by Bill Williams, part of his series of 'Chaos Theory'. Bill Williams went on to develop various indicators as part of this '5-market dimensions'. Some of the other well known indicators from Bill Williams include the Williams Fractal, Alligator, Awesome Oscillator.
The Awesome oscillator is commonly found on many charting platforms and is used to measure momentum. The awesome oscillator is identified by its histogram which oscillates around the 0-line. When the awesome oscillator (AO for short) rises above the 0-line, it indicates positive momentum and when it drops below the 0-line, it indicates negative momentum. Trade signals are taken based in reference to the AO's 0-line.
Calculating the Awesome oscillator
The Awesome Oscillator calculates th...