Awesome Signal Oscillator Indicator

Awesome Signal Oscillator Indicator

Forex market trend from the best Awesome Signal Oscillator Indicator for MT4. Find the trend’s momentum.

The Awesome Signal Oscillator Indicator is a modified version of the traditional Awesome Oscillator and provides additional insights using a signal line.

It calculates the difference between two Simple Moving Averages of different periods. It fluctuates above and below a zero line, with positive values suggesting bullish momentum and negative values indicating bearish momentum.

How to use the Awesome Signal Oscillator Indicator for MT4?

The above USD/JPY H4 chart shows the indicator’s BUY/SELL signals.

To find out the BUY/SELL signals, you have to look at the signal line.

When the oscillator crosses above the signal line, it generates a bullish signal. On the other hand, when the oscillator crosses below the signal line, it illustrates a bearish signal.

In addition to the crossover signals, traders pay attention to the divergence between the oscillator and price. Divergence occurs when the oscillator and price move in opposite directions, signaling a trend reversal.

For instance, a bullish divergence occurs when the oscillator makes higher lows while the price makes lower lows, indicating an upward trend reversal.

It’s important to note that Awesome Signal Oscillator Indicator may not work properly in volatile market conditions. So, it’s better to apply it with other technical tools like support and resistance for further signal confirmation.

Conclusion
The Awesome Signal Oscillator Indicator combines the momentum-focused Awesome Oscillator with a signal line. You can spot potential buying and selling opportunities by analyzing the crossovers and divergences between the AO and its signal line.