Awesome

[NCDindia]

The awesome oscillator is a client side VTL Script which is used to measure market momentum. AO calculates the difference of a 34 Period and 5 Period Simple Moving Averages. The Simple Moving Averages that are used are not calculated using closing price but rather each bar's midpoints. AO is generally used to affirm trends or to anticipate possible reversals.

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:
 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.
 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:
 for this signal to be generated, only two columns are necessary;
 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);
 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:
 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.
 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, adifferent signal to buy will be generated — nought line crossing.
 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.
 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.
Calculation
AO is a 34-period simple moving average, plotted through the central points of the bars (H+L)/2, and subtracted from the 5-period simple moving
average, graphed across the central points of the bars (H+L)/2.
MEDIAN PRICE = (HIGH+LOW)/2
AO = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34)
where:
 SMA —Simple Moving Average.

 

[NCDindia]

Awesome Indicator for Vertex Fx

The Awesome Oscillator is a client side VTL Script used in VertexFX to measure market momentum. AO calculates the difference of a 34 Period and 5 Period Simple Moving Averages. The Simple Moving Averages that are used are not calculated using closing price but rather each bar's midpoints. AO is generally used to affirm trends or to anticipate possible reversals.
The most straightforward, basic signal generated by the Awesome Indicator is the Zero Line Cross. This is simply when the AO value crosses above or below the Zero Line. This indicates a change in momentum.
Zero Line Cross -
When AO crosses above the Zero Line, short term momentum is now rising faster than the long term momentum.This can present a bullish buying opportunity.
When AO crosses below the Zero Line, short term momentum is now falling faster than the long term momentum. This can present a bearish selling opportunity.
Twin Peaks Setup -
Twin Peaks is a method which considers the differences between two peaks on the same side of the Zero Line.
A Bullish Twin Peaks setup occurs when there are two peaks below the Zero Line. The second peak is higher than the first peak and followed by a green bar. Also very importantly, the trough between the two peaks, must remain below the Zero Line the entire time.
A Bearish Twin Peaks setup occurs when there are two beaks above the Zero Line. The second peak is lower than the first peak and followed by a red bar. The trough between both peaks, must remain above the Zero Line for the duration of the setup.
Saucer Setups
A Saucer AO Setup looks for more rapid changes in momentum. The Saucer method looks for changes in three consecutive bars, all on the same side of the Zero Line.
A Bullish Saucer set up occurs when the AO is above the Zero Line. It entails two consecutive red bars (with the second bar being lower than the first bar) being followed by a green Bar.
A Bearish Saucer set up occurs when the AO is below the Zero Line. It entails two consecutive green bars (with the second bar being higher than the first bar) being followed by a red bar.