When the AO histogram turns green it indicates buyers stepping in, but only a break above the zero line will signal a real shift in the market sentiment.
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The higher this number, the more decimal points will be on the indicator's value.
However, there are two crucial differences between this indicator and the MACD, which is something I'll explain in this article.
This means that in theory, can be situations in which the Awesome oscillator AO stays above or below the zero line for long periods of time.
Likewise, a red bar is printed when the current value is lower than the previous value. The way to interpret this indicator is relatively straightforward: The higher the oscillator moves above zero, the stronger the uptrend is.
The lower it moves below zero, the stronger the downtrend is. Zero line cross When the Awesome oscillator crosses below the zero line, it means that the 5 SMA has crossed below the 34 SMA, and vice versa when the Awesome oscillator crosses above the zero line.
Thus, if, to you, the crossing of the two moving averages constitutes a trend change, then you may want to trade whenever the awesome oscillator crosses the zero line. This means that there is no trend itself on the market yet.
Most likely that it is controlled by the "floor" traders who are trying to "stir you up" and to "knock many people out" taking their money with the help of Stop Loss at the same time. Location of the indicator View of the indicator on the chart But let's move to the signals.
There is no need to pay attention to the zero line. It is important to observe the rule that the long positions should be opened when the Accelerator Oscillator bar is green and the short ones should be opened when it is red. It is desirable for the bars of Awesome Oscillator and the ones of Accelerator Oscillator to be the same color.
In case it is not so, it is better to refrain from trading if there is no obvious perspective to enter the market. The signals of Accelerator Oscillator: Buy when the histogram is above the zero line. In order to set the Buy Stop order you need a red bar to be replaced by two green bars; Sell when the histogram is under the zero line. AO is generally used to affirm trends or to anticipate possible reversals. The generated values are plotted as a histogram of red and green bars.
A bar is green when its value is higher than the previous bar. A red bar indicates that a bar is lower than the previous bar. When AO's values are above the Zero Line, this indicates that the short term period is trending higher than the long term period. When AO's values are below the Zero Line, the short term period is trending lower than the Longer term period.
This information can be used for a variety of signals. This is simply when the AO value crosses above or below the Zero Line. This indicates a change in momentum. When AO crosses above the Zero Line, short term momentum is now rising faster than the long term momentum.
Learn The Bill Williams Awesome oscillator strategy is a momentum strategy that seeks to take advantage of the most immediate trend.
Accelerator Oscillator. Price is the latest element to change. (and vice versa in cases when it is below nought). Unlike in case with Awesome Oscillator. Add an early warning system to your trading strategy and detect changes in the market driving force with the Accelerator Oscillator The Awesome Oscillator.
Learn how to trade with the help of Accelerator Oscillator, the change of accelerator which will be preceded by the the Awesome Oscillator. Trading with Accelerator Oscillator Indicator. The Accelerator Oscillator is a built from the Awesome Oscillator Accelerator Oscillator = Awesome Oscillator.
Dec 15, · Looking for Accelerator Oscillator or Awesome Oscillator alerts and indicator. Accelerator Oscillator was designed by Bill Williams and is considered to be an advancement of the Awesome Oscillator.