This type of indicator that was invented by Bill Williams is plotted through the middle points of the bars (H+L)/2, which is then subtracted from the 5-period simple moving average, that uses the central points of the bars (H+L)/2 to display graphically the market direction. It is important not to use this indicator alone, but instead with other technical analysis tools.
The Awesome Oscillator is used to measure the market momentum and it will show you when there is a possible price reversal by comparing the most recent momentum for the symbol, it is very useful for technical analysis by adjusting the momentum calculation to strengthen the common weaknesses.
How to Use Indicators
The following information will help you with the signals that this indicator will provide for both buy and sell so that you can either enter a trade or manage an existing one.
In the histogram graph of the indicator, when the strong bearish bars are shown as a strong red colour above change to the weak bearish bars as shown as orange, the symbol is seen as oversold and a price reversal may happen, this is when you should consider entering a long position or closing your sell position.
In the histogram graph of the indicator, when the strong bullish bars are shown as a strong green colour above change to the weak bullish bars as shown as light green, the symbol is seen as overbought and a price reversal may happen, this is when you should consider entering a short position or closing your buy position.
How To Install & Open
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Remember, this is an Indicator.
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.