Purpose of the Awesome Oscillator
The Awesome Oscillator (AO), developed by Bill Williams, measures market momentum. It is the difference between a 5-period and a 34-period simple moving average of the median price. Values above 0 show bullish momentum and values below 0 show bearish momentum.
How It Works
The Awesome Oscillator has no period settings of its own. It always uses the standard 5- and 34-period averages of the median price.
When you select Awesome Oscillator (AO) in the Trade Rule block, you can configure it with the following settings:
Time Frame of AO
Sets the chart time frame for the AO calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of AO
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of AO (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Candle ID: 1
You get the AO value of the most recently closed candle. A value above 0 means short-term momentum is stronger than long-term momentum.
Use Cases
Use a zero-line cross as a momentum signal.
Detect strengthening momentum when the AO keeps rising.
Spot divergence between price and the AO.
⚠ Tip: AO values are expressed in price units, so their size differs per symbol. Compare them with 0 or with earlier AO values.