

The stock drifted higher however, we have noticed from glancing at a number of charts, the buy and sell saucer signals generally come after a little pop. In the above example, AMGN experienced a saucer setup and a long entry was executed. Without going into too much detail, this sounds like a basic 3 candlestick reversal pattern that continues in the direction of the primary trend.Īwesome Oscillator Saucer Strategy Explanation:
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Choppy markets plus oscillators equal fewer profits and more commissions.įor this reason, we give the cross of the 0 line an F. This 5-minute chart of Twitter illustrates the main issue with this strategy, which is that the market will whipsaw you around like crazy. Out of the 7 signals, 2 were able to capture sizable moves. In the above example, there were 7 signals where the awesome oscillator indicator crossed the 0 line. Hence, you can have a green histogram, while the awesome oscillator is below the 0 line. The one item to point out is that the color of the bars printed represent how the awesome oscillator printed for a period. A positive reading means the fast period is greater than the slow and conversely, a negative is when the fast is less than the slow. The awesome oscillator indicator will fluctuate between positive and negative territory.

Nevertheless, the most common format of the awesome oscillator is a histogram. You, however, reserve the right to use whatever periods work for you, hence the x in the above explanation.ĭepending on your charting platform, the awesome oscillator indicator can appear in many different formats. Basically, it is a 34-bar simple moving average subtracted from a 5-bar simple moving average.” Williams stated in his book, “It is, without doubt, the best momentum indicator available in the stock and commodity markets. One point to clarify, while we listed x in the equation, the common values used are 5 periods for the fast and 34 periods for the slow. Slow Period = (Simple Moving Average (Highest Price + Lowest Price)/2, x periods) Awesome Oscillator = Fast Period – Slow Period The fact Bill saw the need to go with the mid-point, well is a bit awesome.įast Period = (Simple Moving Average (Highest Price + Lowest Price)/2, x periods) If you were to use the closing price and there was a major reversal, you would have no way of capturing the volatility that occurred during the day. The value of using the mid-point allows the trader to glean into the activity of the day. If there was a ton of volatility, the mid-point will be larger.

The one twist the awesome oscillator adds to the mix, is that the moving averages are calculated using the mid-point of the candlestick instead of the close. The formula compares two moving averages, one short-term and one long-term. Comparing two different time periods is pretty common for a number of technical indicators. If you have a basic understanding of math, you can sort out the awesome oscillator equation. While on the surface one could think the awesome oscillator indicator is comprised of a complicated algorithm developed by a whiz kid from M.I.T., you may be surprised to learn the indicator is a basic calculation of two simple moving averages. That’s right folks, not an EMA or displaced moving average, but yes, a simple moving average. Unlike the slow stochastics, which is range bound from +100 to -100, the awesome oscillator is boundless. Note: When you embed the widget in your site, it will match your site's styles (CSS).Well by definition, the awesome oscillator is just that, an oscillator.
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Get the embed code The Flirts - Questions of the Heart Album Another Kiss3.Like A Thief In The Night4.Special AngelThe Flirts Lyrics provided by Gotta get your act together, her love won't wait forever Too proud to say: "I'm sorry", but there's no time to worry Like a thief in the night he is gonna come back again Hold her tight, there's no reason for fears Please, listen what I have to say, I know you will be back to stay There is no time for waiting, no time for hesitating You had your little love affair, but don't you act like you don't care

There's no time for pretending, my broken heart needs mending
