Awesome Oscillator (AO) — what it is and how to use it in trading
Definition
The Awesome Oscillator (AO) is Bill Williams's momentum oscillator: the difference between a fast and a slow simple moving average of the median price (high+low)/2, rather than the close most other indicators use.
How it works in the builder
The awesome_oscillator operand takes window1/window2 parameters (default 5 and 34 — the fast and slow SMA). It returns a number in price units, oscillating around zero, with no fixed upper/lower bound.
What it looks like on the chart
Classically drawn as a histogram (green/red bars above and below zero), but in the builder it is available as a plain numeric line for entry conditions.
Typical use
A zero-line crossover is the classic momentum-shift signal. Typical condition: awesome_oscillator(5, 34) crossed_above 0 to confirm the start of an upward push.
Common pitfalls
Since AO is built on averages of the median price rather than the close, it lags similarly to MACD — on a ranging market zero crossovers are frequent and not very informative. Because the value is in price units, it does not compare well across instruments with very different price scales.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.