Awesome Oscillator Indicator Technival Analysis Tamil Trading
Awesome Oscillator Indicator Analysis
• Awesome Oscillator is a histogram consisting of slopes turning from red to green and vice versa.
• Because of its nature as an oscillator, the Awesome Oscillator is designed to have values that fluctuate above and below a Zero Line. The generated values are plotted as a histogram of red and green bars. A bar is green when its value is higher than the previous bar. A red bar indicates that a bar is lower than the previous bar.
• When AO's values are above the Zero Line, this indicates that the short-term period is trending higher than the long-term period. When AO's values are below the Zero Line, the short-term period is trending lower than the longer-term period. This information can be used for a variety of signals.
• The common values used are five periods for the fast and 34 periods for the slow.
• As the entry signal, we will take the moment when the histogram’s slopes cross the zero level and change colour according to the trade rules.
• The basic principles are the same as with other histograms. The cross of the zero level up indicated the upcoming trend and the cross of the zero level down, the possible reversal to the downtrend.