Awesome Oscillator Indicator

Awesome Oscillator Indicator

Best for forex & stocks traders seeking consistent trend signals. Suits trend-following strategies & MTF charts

The Awesome Oscillator (AO) is an MT4 momentum indicator. It closely monitors the price-action changes, determines market momentums, and delivers possible trend reversal signals.

Besides trend signals, Awesome Oscillator also demonstrates the changes in strength and weakness of the market momentum. So, apart from determining trend-following entries, you can also use its signals for deciding on trade exits.

Both forex and stock traders widely depend on momentum tools to have clear insights into the present trend conditions and to assess the possibility of future trend-reversals. In that regard, AO is quite popular among both day and intraday traders for its consistency in delivering real-time trend signals.

How to determine buy-sell by using Awesome Oscillator Indicator in MT4

Awesome Oscillator uses colored histogram bars for demonstrating momentum status. When the oscillator value turns above zero, the bars become blue to signal the bullish momentum. If the bars turn red while closing above the zero line, we consider the market is losing its bullish momentum and may turn bearish shortly.

For a buy confirmation, it is best to wait for the moment when the price makes a bullish breakout and the Awesome Oscillator value turns positive simultaneously. Once you go long, consider holding the position until the bars keep rising and remain in blue.

When the AO value starts to fall, the bars become shorter, appearing in red color. It means the market is losing its current bullish momentum and intends to plot a bearish trend reversal. Aggressive day traders may call for a buy-exit during such situations. If you prefer to keep your trade running for extended periods, it is ideal to exit long when the oscillator value turns negative.

During a bearish trend-reversal, the oscillator bars straightly drop below zero and shows up in red color. Go short once the AO confirms a downtrend market and the price plots a bearish reversal pattern at the exact moment. Depending on price actions, the signal may appear comprising a bearish inside bar break or a bearish price breakout at a key market level. For sell-exits, wait until the bars turn blue and the oscillator value starts increasing steadily.

The accuracy of Awesome Oscillator signals vastly depends on the nature of market volatility. As a result, you cannot entirely rely on momentum indicators during choppy or sidelined market conditions. Therefore, we recommend adding other technical tools like support/resistance, trendlines, moving averages alongside Awesome Oscillator for better decision-making.

Conclusion
Awesome Oscillator is a useful momentum indicator for both trend and swing traders. Beginners prefer AO for its simplicity of use and easy-to-read signals. Moreover, expert professionals also consider it as a reliable decision-making assistant alongside their existing trading strategies.

If you prefer having technical insights into the market momentums for anticipating trade signals, it is always ideal to have the Awesome Oscillator on the MT4 chart.