SMA (Median Price, 5) – SMA (median Price, 34)
SMA = Simple Moving Average
Median Price = (High + low) / 2
AO ( Awesome Oscillator) is a technical analysis indicator developed by American Trader Bill Williams. This indicator was specially made for beginner-level traders and it helps traders and it helps traders to analyze the market using two moving average lines usually with period and 3 4 here, 5 is a fast-moving average line that reacts faster to the price changes than 34 which reacts slower.
How to configure Awesome Oscillator?
All you need to do is to open a Binomo trading account, well once you login into the Binomo account you will straight land on the Binomo trading dashboard.
Then click on the trading tool icon which is on the left side of the screen.
Now you can see the Awesome Oscillator option which is the fourth last option in the list.
As you can see the Awesome Oscillator dialogue box has opened, and now you can set the fast and slow options accordingly. If you don’t like the colour you can change it as per your requirement. Then finally hit on the apply button.
How to trade with Awesome Oscillator?
Trading with Awesome Indicator is quite very easy. As said above this indicator used two moving average lines that ribbons around the 0.00 mid-line in the form of bar when we see a green bar above the 0.00 line it signals a bullish trend and when we see a red bar below the 0.00 line it signals a bearing trend
Place buy trade with post line zero
Given above is the chart of GBPUSD and we clearly can see a good amount of green bars above 0.00 lines. This clearly indicates the upcoming bullish trend and we can place a buy trade. The trend is considered even more stronger if the green bars are coming from the – 0.00 line.
When we come to see a good amount of red bars below the 0.00 lines. This clearly indicates the upcoming bearish trend and we can place a sell trade. The trend is considered even more stronger if the red bars are coming from the + 0.00 line.