Awesome oscillator

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    The awesome oscillator is an indicator that shows the market momentum by taking the difference between two simple moving averages with different values. It compares the market momentum of a previous period to that of a more recent one.

    How to use it in trading

    The awesome oscillator is calculated by subtracting the simple moving average with the long period from the one with the shorter period.

    Green lines show when the price was going up and red lines when it was going down. When the indicator is rising, it shows increasing market momentum; when the indicator is falling, it shows decreasing market momentum. The stronger the movement of the oscillator, the stronger the price movement.

    In the chart below, the awesome oscillator can be found in the area below the price action.

    Awesome Oscillator