HOW TO TRADE WITH AWESOME OSCILLATOR TECHNICAL INDICATOR
yourFXguide-Awesome Oscillator is really awesome. A gentleman, Bill Williams, developed this indicator. This indicator is very similar to the MACD histograms indicator. This indicator is composed of histograms that change color over time and a zero line from which the histograms grow up and down.
These are the very basics about Awesome Oscillator and I am not interested to put extra care on the mathematics behind this indicator. I am just going to focus on the technique to interpret this indicator and apply it on my trading platform to find entry and exit signals.
The most important situations to focus with this indicator are-
-When the color of the histograms change over time.
-When the histograms turn into positive territory.
-When the histograms turn into negative territory.
-When a loop like formation is formed in the positive or negative territory.
-When the histograms stay in positive territory for long period of time.
-When the histograms stay in negative territory for long period of time.
To interpret this indicator, we are going to focus on the aforementioned situations. Firstly, when the color of the histograms turn into green, it indicates that the bulls are more powerful than the bears. On the other hand, when the color of the histograms turn into red, it indicates that the bears are more powerful than the bulls. You can choose any color combinations.
In the negative territory, when the histograms grow longer they turn into red color. and when the histograms become shorter they turn into green color.Unlikely, in the positive territory opposite scenarios are observed.
Zero line crossovers from both territory play significant role in interpreting the awesome oscillator. When the histograms turn into negative territory from the positive territory, it indicates a bearish trend. In other way,when the histograms turn into positive territory from the negative territory, it indicates a bullish trend.
When the histograms stay in the positive territory for a long period of time, It indicates a long bullish trend.And when the histograms stay in the negative territory for a long period of time, It indicates a long bearish trend. In such situations, if the color of the histograms change, it indicates a correction.
Dear Traders, this are basic rules you need to know before applying the awesome oscillator into your trading systems. If you have any question regarding this post, you can drop it into the comment section below. I generally response to your comments within 24 hours.
These are the very basics about Awesome Oscillator and I am not interested to put extra care on the mathematics behind this indicator. I am just going to focus on the technique to interpret this indicator and apply it on my trading platform to find entry and exit signals.
-When the color of the histograms change over time.
-When the histograms turn into positive territory.
-When the histograms turn into negative territory.
-When a loop like formation is formed in the positive or negative territory.
-When the histograms stay in positive territory for long period of time.
-When the histograms stay in negative territory for long period of time.
To interpret this indicator, we are going to focus on the aforementioned situations. Firstly, when the color of the histograms turn into green, it indicates that the bulls are more powerful than the bears. On the other hand, when the color of the histograms turn into red, it indicates that the bears are more powerful than the bulls. You can choose any color combinations.
Zero line crossovers from both territory play significant role in interpreting the awesome oscillator. When the histograms turn into negative territory from the positive territory, it indicates a bearish trend. In other way,when the histograms turn into positive territory from the negative territory, it indicates a bullish trend.
Dear Traders, this are basic rules you need to know before applying the awesome oscillator into your trading systems. If you have any question regarding this post, you can drop it into the comment section below. I generally response to your comments within 24 hours.
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