Awesome Oscillator Strategy
Usage of the Awesome Oscillator Indicator
The Awesome Oscillator shows the difference between a 5-period Moving Average and a 34-period Moving Average, both calculated for the midpoints of the candles, (High+Low)/2. It is a unique indicator which reflects the tendencies in the market.
There are several ways to use the Oscillator in a strategy. The first way is to open a buy position if the Oscillator is above the zero line, and forms a hollow, and open a sell position if the Oscillator is below the zero line and forms a peak.
Another way is to open a buy position if the indicator is below the zero level, and forms two minimums, but the latest one is not as low as the previous one, and open a sell position if the indicator forms two maximums above the zero line, but the second one is lower than the previous one.
One more way is to account crossing the zero line. If the indicator crosses it bottom-up, it is the time to open a buy position, and if the indicator crosses it top-down, it is the time to open a sell position.