Awesome Indicator

Awesome Indicator

The Awesome indicator for MT4 identifies potential trend reversal zones and confirms the direction of the market.

The Awesome indicator for MetaTrader 4 is a technical trading indicator designed for trend confirmation and to identify possible trend reversal zones. This is because the indicator is programmed to automatically track and compare both past and current market momentum to determine the weakness and strengths of financial instruments.

How do you read awesome oscillators?
The Awesome Oscillator reflects the momentum of the market with the green and red histogram bars that move above and below the zero line of the indicator. The bars above the zero line indicate a rising bullish momentum, which is an ideal condition to look for a buying opportunity. Conversely, the bars below the zero line indicate a surge in the bearish momentum of the financial asset; this may be used to identify a selling opportunity.

Furthermore, the indicator may also be used to identify bullish and bearish divergences of the price for possible buy/sell entries. However, price action/other indicators should be consulted to find a suitable trade entry.

How to Trade With the Awesome Indicator

The above image shows the action of the Awesome indicator on the EURUSD currency pair in the H1 timeframe. As earlier stated, the indicator may be used to identify buying or selling opportunities through price divergence or when the histogram bars are above or below the zero line, respectively.

The above image typifies how to identify a potential trend reversal setup through the bullish divergence formation. It shows that the market was trending to the downside, while the indicator printed two swing highs, which shows the first peak to be higher than the second peak. These formations suggest a potential trend reversal to the upside and the bullish engulfing candlestick confirms the buy entry.

Conclusion
The Awesome indicator for MT4 is one of the recommended technical trading tools for both beginners and advanced forex traders to easily identify potential trend reversals and also to confirm the direction of the market. Finally, it is free to download.