Awesome oscillator forex

Awesome Oscillator indicator Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA. If to be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows awesome oscillator forex see the market momentum. What’s “awesome” about the Awesome Oscillator?

Unfortunately, besides the word “awesome” there isn’t much to be impressed with. Forex markets proved to be too unstable for this indicator. On the other hand, if you’re trading stocks, Awesome Oscillator will be more interesting to study, since, unlike with currencies, Stock markets sustain longer more stable trends. Let’s take a look at the Awesome Oscillator in action by simply comparing it to 5 and 34 SMA on the chart. As you can see, the AO mirrors the up and down moves of the 5 SMA in relation to 34 SMA. That’s our momentum Up and momentum Down periods.

When two SMAs finally cross, the AO also crosses its zero line. Is AO fast enough to send signals about the market changes and aid us with entries as well as exits? Awesome Oscillator is slow and usually late with signals. When AO is above zero – only Buy orders should be taken.