Bill Williams's Awesome Oscillator (AO) is a 34-period simple moving average, plotted through the middle points of the bars (H+L)/2, which is subtracted from the 5-period simple moving average, built across the central points of the bars (H+L)/2.
It shows us quite clearly what’s happening to the market driving force at the present moment. (B. Williams: "New Trading Dimensions: How to Profit from Chaos in Stocks, Bonds and Commodities").
Signals to Buy:
"Saucer" is the only signal to buy that comes when the bar chart is higher than the zero line. One must bear in mind:
Keep in mind, that all Awesome Oscillator columns should be over the zero line for the saucer signal to be used.
"Zero line crossing" is the signal to buy generated when the bar chart passes from the area of negative values to that of positive. It comes when the bar chart crosses the zero line. As regards this signal:
"Two pikes" is the only signal to buy that can be generated when the bar chart values are below the zero line. As regards this signal, please, bear in mind:
Signals to Sell:
Awesome Oscillator signals to sell are identical to the signals to buy. The saucer signal is reversed and is below zero. zero line crossing is on the decrease - the first column of it is over the zero, the second one is under it. The two pikes signal is higher than the zero line and is reversed too.
Awesome Oscillator Indicator
AO is a 34-period simple moving average, plotted through the central points of the bars (H+L)/2, and subtracted from the 5-period simple moving average, graphed across the central points of the bars (H+L)/2.
MEDIAN PRICE = (HIGH + LOW) / 2
AO = SMA (MEDIAN PRICE, 5) - SMA (MEDIAN PRICE, 34)
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/13
The Acceleration/Deceleration Indicator (AC) measures acceleration and deceleration of the current driving force.Average Directional Movement Index (ADX)
The Average Directional Movement Index Indicator (ADX) helps to determine if there is a price trend.