# Awesome Oscillator

## Description

Owesome oscillator is an another kind of Moving average convergence/divergence indicator just with predefined input parameters. AO calculates the difference beetwen 34 period SMA and 5 period SMA smothed with 5 period mooving average.

![](https://4186075531-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LD6FsRvQ3jgwJIg6O7r%2F-LEJcze8l8tZqOqzbRdV%2F-LEJf3Y9bcdb5ONji-vT%2Fimage.png?alt=media\&token=d54f80d9-f83a-4e4c-a6d2-2af97a9e42f2)

## Formula

5 period SMA - 34 period SMA

## Most useful cases

* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) of the price not confirmed with a new high/low of  AO. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.

![](https://4186075531-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LD6FsRvQ3jgwJIg6O7r%2F-LEJcze8l8tZqOqzbRdV%2F-LEJfpPKKPIYF6VGLH5j%2Fimage.png?alt=media\&token=09ee5570-7abf-494f-964c-f7dd90139b9e)

* **Crossing zero line** - this is a trend reversing signal and it can be very useful in case of determining a correction of existing trend, beginning of a new trend wave or starting a new trend.