What Is Awesome Oscillator (AO)?
The Awesome Oscillator measures market momentum by comparing a fast and slow simple moving average of median price.
Quick Answer
The Awesome Oscillator measures market momentum by comparing a fast and slow simple moving average of median price.
What Does AO Measure?
The Awesome Oscillator (AO) was created by Bill Williams as part of his trading system. It subtracts a 34-period SMA of median price (high + low) / 2 from a 5-period SMA of median price. The result is displayed as a histogram — green bars when AO is rising, red when falling. Zero-line crossovers, twin peaks, and saucer patterns are common AO trading setups. Because it uses median price rather than close, AO captures intrabar momentum differently from MACD. VaultCharts includes the Awesome Oscillator as a free subpane indicator on desktop charts.
AO = SMA(Median Price, 5) - SMA(Median Price, 34), where Median Price = (High + Low) / 2How to Read AO
- 1AO above zero indicates bullish momentum
- 2AO below zero indicates bearish momentum
- 3Green histogram bars show increasing momentum
- 4Red histogram bars show decreasing momentum
How to Use AO in Trading
AO Settings
| Setting | Default | Description |
|---|---|---|
| Fast Period | 5 | Period for fast SMA of median price |
| Slow Period | 34 | Period for slow SMA of median price |
Common Mistakes to Avoid
Use AO in VaultCharts
VaultCharts includes Awesome Oscillator with customizable settings. Combine it with our automated pattern detection and trade signals for better analysis.