The Awesome Oscillator (AO) is an indicator that attempts to gauge whether bearish or bullish forces are currently driving the market. It does this by effectively comparing the recent market momentum, with the general momentum over a wider frame of reference.

AO can be calculated using the difference of a 34 Period and 5 Period Simple Moving Averages.

The most straightforward signal generated by the Awesome Indicator is the Zero Line Cross. 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. This can present a bullish buying opportunity.

When AO crosses below the Zero Line, short term momentum is now falling faster than the long term momentum. This can present a bearish selling opportunity.

Easy Awesome Oscillator provides a comprehensive dashboard that allows you to view the Awesome Oscillator Zero Line crossover signals of multiple instruments across 6 timeframes (M5, M15, M30, H1, H4, D1) at one glance. In this way, you do not miss out any trading opportunities even on the go.

Below are some of the key features of the app.

- Timely display of Awesome Oscillator Zero Line crossover signal of multiple instruments across 6 timeframes (lower timeframes signals are only available for subscribers)

- Timely push notification alert of Awesome Oscillator Zero Line crossover signal of your favourite instruments on your watch list,

- Display headline news of your favourite instruments,

- Economic Calendar of upcoming events

Easy Indicators relies on your support to fund its development and server costs. If you like our apps and wish to support us, kindly consider subscribing to Easy Awesome Oscillator Premium. This subscription removes all advertisements within the app, allows you to access the signals of all 6 timeframes and support our development of future enhancements.

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Disclaimer/Disclosure

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The Easy Awesome Oscillator (EAO) is a technical indicator used in financial analysis to identify potential trading opportunities. It is a momentum indicator that measures the difference between a security's closing price and its average closing price over a specified period. The EAO is plotted as a histogram, with positive values indicating bullish momentum and negative values indicating bearish momentum.

Calculation

The EAO is calculated using the following formula:

```

EAO = (Current Close - Average Close) / Average Close

```

Where:

* Current Close is the closing price of the security on the current day

* Average Close is the average closing price of the security over a specified period

The average closing price is typically calculated using a simple moving average (SMA) or an exponential moving average (EMA). The period of the moving average is a user-defined parameter, with common values ranging from 5 to 20 days.

Interpretation

The EAO is interpreted as follows:

* Positive values: Indicate that the security's closing price is above its average closing price, suggesting bullish momentum.

* Negative values: Indicate that the security's closing price is below its average closing price, suggesting bearish momentum.

* Crossovers: When the EAO crosses above or below the zero line, it can indicate a potential change in momentum.

Trading Strategies

The EAO can be used in various trading strategies, including:

* Trend following: Traders can use the EAO to identify trends and enter trades in the direction of the trend.

* Momentum trading: Traders can use the EAO to identify momentum shifts and enter trades in the direction of the momentum.

* Divergence trading: Traders can use the EAO to identify divergences between the price action and the EAO, which can indicate potential trading opportunities.

Advantages

* Easy to calculate and interpret

* Can identify both bullish and bearish momentum

* Can be used in various trading strategies

Limitations

* Can be lagging, especially during periods of consolidation

* Can generate false signals in choppy markets

* Requires optimization of the moving average period

Overall

The Easy Awesome Oscillator is a versatile technical indicator that can be used to identify potential trading opportunities. It is relatively easy to calculate and interpret, but it should be used in conjunction with other technical indicators to confirm signals.