Awesome Indicator system

i think awesome is best indicator to trade and is one of the most powerful indicators you can use. It is very reliable and very intuitive even if you have never seen it before.
There are plenty of charting packages that offer the awesome indicator

If you use this indicator as a trading system, you will always be in a trade. This means that, for example, if the indicator gives you a buy signal, you enter in a long position. As soon as it gives you a sell signal, you exit the
long trade and, at the same time, you enter in a short sell
position.

The Awesome indicator appears as an histogram and has two colours – red and green. When the indicator is red, it means that the indicator decreased; when it is green, it means that the indicator increased.

This indicator is a great tool to spot tops and bottoms, so it’s a good idea to use it especially for that. It helps you to confirm trades generated by other techniques and you can also use it as a trading system.

Usually, when the Awesome indicator is below the centerline (0) and turns green, that means that a rise in prices can be near. When the indicator is above the centerline (0) and turns red, that usually means that prices
can be in or near a top.

Try with Timeframe M15

From your chart, it looks the opposite.. when it is above the centerline and turns red take a long position.. when it is below and turns green take a short position. Theres more cases in doing that and being profitable than what you suggested.

Comments?

The full list of potential AO trades.

Awesome Oscillator Technical Indicator (AO) is a 34-period simple moving average, plotted through the middle points of the bars (H+L)/2, which is subtracted from the 5-period simple moving average, built across the central points of the bars (H+L)/2. It shows us quite clearly what’s happening to the market driving force at the present moment.
Signals to buy

Saucer

This is the only signal to buy that comes when the bar chart is higher than the nought line. One must bear in mind:

1. the saucer signal is generated when the bar chart reversed its direction from the downward to upward. The second column is lower than the first one and is colored red. The third column is higher than the second and is colored green.
2. for the saucer signal to be generated the bar chart should have at least three columns.

Keep in mind, that all Awesome Oscillator columns should be over the nought line for the saucer signal to be used.


Nought line crossing

The signal to buy is generated when the bar chart passes from the area of negative values to that of positive. It comes when the bar chart crosses the nought line. As regards this signal:

1. for this signal to be generated, only two columns are necessary;
2. the first column is to be below the nought line, the second one is to cross it (transition from a negative value to a positive one);
3. simultaneous generation of signals to buy and to sell is impossible.

Two pikes

This is the only signal to buy that can be generated when the bar chart values are below the nought line. As regards this signal, please, bear in mind:

1. the signal is generated, when you have a pike pointing down (the lowest minimum) which is below the nought line and is followed by another down-pointing pike which is somewhat higher (a negative figure with a lesser absolute value, which is therefore closer to the nought line), than the previous down-looking pike.
2. the bar chart is to be below the nought line between the two pikes. If the bar chart crosses the nought line in the section between the pikes, the signal to buy doesn’t function. However, a different signal to buy will be generated — nought line crossing.
3. each new pike of the bar chart is to be higher (a negative number of a lesser absolute value that is closer to the nought line) than the previous pike.
4. if an additional higher pike is formed (that is closer to the nought line) and the bar chart has not crossed the nought line, an additional signal to buy will be generated.

Signals to sell

Awesome Oscillator signals to sell are identical to the signals to buy. The saucer signal is reversed and is below zero. Nought line crossing is on the decrease — the first column of it is over the nought, the second one is under it. The two pikes signal is higher than the nought line and is reversed too.

are you able to show us some charts for your elaborations?
tks....

awesome is one of the best indicator you can use to improve your timing on the market. when there is no trend on the market (sidewas market) the awesome grabs top and bottoms in advance like no other indicator.

when there's solid trend on the market, you can use the awesome to enter trades that go with the trend and to better time your exit points. This indicator is extremely reliable (probably because most traders never heard of it before). and flexible.

Using this indicator alone is enought to improve your current strategy performance drasticcaly.

When the Awesome oscillator is above 0 and turns red, this means a
top can be near, so it’s time to exit your long positions and start
looking for a good short sell opportunity. I placed some red arrows on
the image above indicating these points.

When the Awesome oscillator is below 0 and turns green, this means
a bottom can be near, so you must exit your short sell positions and
start looking for a good buy opportunity. On the above image, I
placed some green arrows on these points so that you can notice this
signals on the Awesome oscillator.

how has this strategy worked for you ? can you give us some numbers please ?
win rate, avg. pips, etc

hi

http://www.forexfactory.com/attachme...8&d=1243047672

hi riskyachtar, do you just use this strategy only during rangey market?

or you just simply long when awesome turns from green to red when below zero & go short when awesome turns red from green when above zero?

tks....

When the price starts to fall, the indicator is falling too (at this time, the indicator is red). Once the indicator turns green, this means that the bottom, both on prices and in the indicator, might have been reached. This is a good buying opportunity. If you look at the chart you can see that when the price starts to go up, the indicator is moving up as well. It is green and is also crossing up the centerline. Once the Awesome indicator is above the centerline and turns red, this means it is time to exit your position. In this specific case, the prices were quiet for a long time but you were not stuck with the position. The Awesome indicator has done a great job catching the bottom and telling you when the rally was over.

You must follow the Awesome indicator closely because it will tell you the best time to exit the trade. You will close when the Awesome indicator is
giving a downtick (it turned red).

What are you talking about? I thought there is no such thing as an Awesome Indicator, but only Awesome Oscillator (AO) or Awesome Accelarator (AC)!

Here was talk about AO, but picture of AC!

Please clarify. Thank you

Forex37

The Awesome indicator appears as an histogram and has two colours – red and green. When the indicator is red, it means that the indicator decreased; when it is green, it means that the indicator increased. This indicator is a great tool to spot tops and bottoms, so it’s a good idea to use it especially for that. It helps you to confirm trades generated by other techniques and you can
also use it as a trading system. If you use this indicator as a trading system, you will
always be in a trade. This means that, for example, if the indicator gives you a buy signal, you enter in a long position. As soon as it gives you a sell signal, you exit the long trade and, at the same time, you enter in a short sell position.
Usually, when the Awesome indicator is below the centerline (0) and turns green, that means that a rise in prices can be near. When the indicator is above the centerline (0) and turns red, that usually means that prices can be in or near a top. )

Using multiple timeframes can be very useful. The choice of multiple timeframes is crucial. You might be using two different timeframes that are perfect substitutes although they should complement each other.
An easy way for you to check if your timeframes are substitute or complementary, is to multiply your shortest timeframe by 4.
For example, let’s imagine you use a 15 minutes timeframe. If you multiply 15 by 4, this gives you 60 minutes, i.e., 1 hour. But, if you are using a 15 minutes chart along with a 30 minutes chart, you are using the wrong timeframes because you are seeing the same information on both charts. You must switch one or both timeframes so that they complement themselves.

Hi riskyachtar

I use H4 and daily TF.
With your comments, is it ok to use AO for H4 and daily as there is no H16 (no H4 x 4) under MT4?
Any advise?

TQ
fxpip8

Nought line crossings pretty obvious.

Hi riskyachtar,

Some time ago Ive been using Awesome Oscilator togather with Accelerator Oscilator. I didn't use any bar formations, but I was looking exclusively for colors of both. Green=buy, Red=sell. Quite simple. It wasn't any great idea, but trading on daily time frame, and on 11 pairs in parallel gave me incredible results (1000% in a month!) but when market start ranging it just brought my account to the previous level..

I'm wondering if you considered using Accelerator Oscilator too as some sort of filter or a signal which notice you that Awesome may change (Accelerator changes quicker but give less valid signals).

Cheers

You can use script called period converter in MT4 to get any time frame you wish. Perhaps you'll find it helpful.

http://forexforums.dailyfx.com/mt4/6...-advisors.html