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Awesome Oscillator
Add the Awesome Oscillator in Quantower to gauge momentum and spot trend shifts using the difference between two moving averages
Description
Awesome Oscillator is another kind of Moving average convergence/divergence indicator just with predefined input parameters. AO calculates the difference between the 34-period SMA and the 5-period SMA, smoothed with a 5-period moving average.
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.
Crossing zero line - this is a trend-reversing signal and it can be very useful in case of determining a correction of existing trend, the beginning of a new trend wave or starting a new trend.
