Awesome Oscillator
Learn Bill Williams' Awesome Oscillator for measuring market momentum.
What is Awesome Oscillator?
AO is a histogram showing the difference between 5-period and 34-period SMAs of the median price ((High+Low)/2).
- Green bar = higher than previous bar
- Red bar = lower than previous bar
- Oscillates around zero line
Trading Signals
- Zero Line Cross: Above zero = bullish, below = bearish
- Saucer: Three bars forming a saucer shape in direction of trend
- Twin Peaks: Two peaks on same side of zero with pullback between