The idea behind the Awesome Oscillator is simple. Basically, the indicator is a moving average crossover. A period simple moving average is subtracted from a 5-period simple moving average. The AO values fluctuate above and below zero. The resulting values are plotted as green and red bars.

Red color indicates that the bar is lower than the previous one. A green bar is in turn higher than the one before. The indicator will appear in the bottom part of the screen, right below the price chart. This is the most basic and straightforward signal a trader can get when using the Awesome Oscillator. When the AO crosses above the zero line, short-term momentum is rising faster than long-term momentum.

In this case, a zero line crossover might be considered a buying opportunity. When the AO crosses below the zero line, short-term momentum is falling faster than long-term momentum. This pattern is considered by some traders as a selling opportunity.

Two consecutive peaks can be used as a trading signal, as well. Twin Peaks take on the role of the bullish trend messengers when 1 both peaks are below the zero line, 2 the second peak is higher than the first one and is followed by the green bar, 3 the trough between the peaks stays below the zero line.

Twin Peaks become a signal of an upcoming bearish trend when 1 both of them are above the zero line, 2 the second peak is lower than the first one and is followed by the red bar, 3 the trough, in turn, remains above the zero line. Saucer is another signal that can be used for early trend forecasting. It follows the changes in three consecutive bars. When the Awesome oscillator is above zero and two consecutive red bars are followed by a green one, the saucer is considered to be bullish.

When the Awesome oscillator is below the zero line and two consecutive green bars are followed by a red one, the saucer is defined as bearish. The Awesome Oscillator is a diverse and valuable technical analysis indicator that helps traders estimate the momentum and possible trend reversal points. CFDs are complex instruments and entail a high risk of losing money rapidly due to leverage. NOTE: This article is not an investment advice. Any references to historical price movements or levels are informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.

Information regarding past performance is not a reliable indicator of future performance. Forecasts are not a reliable indicator of future performance.

In accordance with European Securities and Markets Authority's ESMA requirements, binary and digital options trading is only available to clients categorized as professional clients. The information presented is the most up to date at the time of publication. Open free account. Technical Analysis. What Trading Strategy to Use with the Awesome Oscillator Indicator? posted on. November 21, The Awesome Oscillator indicator as demonstrated under the price chart How does it work?

The stand-alone Awesome Oscillator indicator The AO values fluctuate above and below zero. How to set up? Setting up the Awesome Oscillator indicator in the IQ Option platform is easy. The Awesome Oscillator is ready to use. How to use Awesome Oscillator Zero Line Crossover This is the most basic and straightforward signal a trader can get when using the Awesome Oscillator.

Bearish and bullish zero line crosses on the AO graph Twin Peaks Two consecutive peaks can be used as a trading signal, as well. Bullish Twin Peaks setup Twin Peaks become a signal of an upcoming bearish trend when 1 both of them are above the zero line, 2 the second peak is lower than the first one and is followed by the red bar, 3 the trough, in turn, remains above the zero line.

Bearish Twin Peaks setup Saucer Saucer is another signal that can be used for early trend forecasting. Bullish Saucer setup When the Awesome oscillator is below the zero line and two consecutive green bars are followed by a red one, the saucer is defined as bearish. Bearish Saucer setup The Awesome Oscillator is a diverse and valuable technical analysis indicator that helps traders estimate the momentum and possible trend reversal points.

general risk warning. It's not an official website of IQ Option. This material is not intended for viewers from EEA countries. Binary options are not promoted or sold to retail EEA traders. AO for short is a histogram-looking indicators developed by technical analyst Bill Williams that serves in measuring of the market momentum. Using a wider time frame, AO indicates the change in momentum of a currency pair in current trading. Verifying the trends and establishing potential reversal points make this tool as awesome as its name.

The concept of the Awesome Oscillator is not that complicated. In short, the indicator is a moving average crossover. A period simple moving average is subtracted from a 5-period simple moving average.

The AO values can move over or under the zero line. Values are simply represented as green and red bars. When the bar is red it means it has lower value than the previous one. When the bar is green it indicates its higher value from the one preceding it. Using simple steps, we will show you how to set up the Awesome Oscillator in the IQ Option platform.

This will open up a list of all the indicator. You are now ready to use The Awesome Oscillator. Zero Line Cross is pretty basic and easy to read signal. Focus is on the zero line and when that line is crossed by AO. When the AO goes over the zero line, it means the short-term momentum is more powerful that the long-term momentum. This indicates an uptrend and a strong buying signal. Alternatively, when the AO goes under the zero line, it means that the short-term momentum is weaker than the long-term momentum.

This is a selling signal to most traders. Twin Peaks are a little harder to read, but nevertheless pretty straightforward. They appear as 3 distinctive signs when indicating an uptrend: 1. Both peaks are under the zero line, 2. The second peak is closer to the zero line and is succeeded by a green bar, 3.

We want to introduce you to the new Awesome Oscillator strategy. The strategies are often based on a few indicators. To apply a strategy successfully, a trader ought to get familiar with the indicators that are used in a particular strategy. Then, he can decide whether it is a method well suited for him or maybe, he shall search further. So let's talk about one of the strategies that combine two indicators, the SMA and Awesome Oscillator. The very first thing you have to do is to log into your IQ Option account.

Then, pick the financial instrument you intend to trade this time. You will also have to set the chart. My recommendation is the Japanese candlesticks chart as most of the strategies are clearly visible on it. The candles period should be adjusted to 1 minute. The next step is to add indicators used in this particular strategy to your IQ Option chart. To do this, click on the indicators icon and select the Moving Average. Make a necessary change that is set the period for and type SMA Simple Moving Average.

The colour and thickness settings can be changed as well. Choose the one most transparent to you. Use the simple moving average with a period of Now, you repeat the procedure for an Awesome Oscillator. You do not have to introduce any changes here as we will use default settings. Once, both indicators are added to your chart, click the indicators icon again. The IQ Option platform gives you the opportunity to save the template so you can use it in the future with one click only.

You can save a template for Awesome Oscillator strategy. Linking indicators is an art of sorts. Of course, many people randomly throw a few indicators on a chart and try to do something in the market based on them. That is not the way to go. You can get a lot of contradictory signals this way. You can also get many of the same signals if the added indicators are similar in nature. Our strategy today is based on the Awesome Oscillator.

Most oscillators, on the other hand, work well with moving averages. This is why we have included a Simple Moving Average in our Awesome Oscillator strategy. It is difficult for me to judge if this is the best combination but it is certainly good. Your chart should look similar to the one below. There is the SMA moving along with the price bars and the Awesome Oscillator window displayed below.

Your job is to watch the SMA first and wait for a moment where it goes through the price bar. After this happened, you check with the Awesome Oscillator and if its bar is in the much-needed colour, you enter the trade. You are waiting for the uptrend to develop.

Then, you are waiting for the SMA to cut through the price bar. Look at the AO histogram. If it is showing a green bar, you have got a confirmation for your trade. Open a long position that lasts 5 minutes. Signal to open 5-minute up trade. Analogically, you are waiting for the downtrend now. Once it has begun, you should follow the SMA line. Wait for the moment when it crosses the price bar. Then, check with the AO histogram. The colour of the bar should be red.

Now, you can open a short transaction. With 1-minute as a chart time frame , your option should last 5 minutes. Signal to open 5-minute down trade. The combination of the SMA and the Awesome Oscillator is quite easy to use. Especially, with the option to save your favourite templates. It just makes your trading smoother.

All you need to do is click on the strategy name you have saved before, and all the indicators needed will be added to the chart. Then, you will have to show some patience. Patience is very important in the trading business.

It is not wise to rush into the trade. You must always wait for confirmation from both, the SMA and the Awesome Oscillator. This increases your chances of success. It is also recommended that you give yourself some time to practice new strategies you have learned. The IQ Option practice account is an excellent place designed for this purpose.

After you got hold of using the Awesome Oscillator strategy, you can switch to the live account and start to make profits. Trade now General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. Submit Rating. Average rating 4. Vote count: No votes so far! Be the first to rate this post. Submit Feedback. Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there.

digital-nomad, traveling all over the world. Skip to content Share on Facebook Tweet Share on Twitter Share on Linkedin Pin it Share on Pinterest. Contents 1 How to prepare a chart for trading Awesome Oscillator strategy 2 How the strategy that combines the SMA and the Awesome Oscillator works 2.

Trade now. General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. How useful was this post? Click on a star to rate it! As you found this post useful Follow us on social media! We are sorry that this post was not useful for you! Let us improve this post! Tell us how we can improve this post? Indicators Strategies. Bart Bregman Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there.

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Technical Analysis. Leave a Reply Cancel Reply Your email address will not be published. To try yourself and not to lose all your money in the first day of your trade we recommend you to create demo account. You do not have to introduce any changes here as we will use default settings. But I also think that tactically, we have to invest the resources we need to compete with the right-wing infrastructure on social media, because if we are not going toe-to-toe with them, they will swamp us in the end.

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