Avesome Oscillator - traditional general approach

Awesome Oscillator (AO) is a momentum indicator that reflects market trend changes by comparing recent market velocity with historical velocity. The traditional trading approach focuses on capturing macro-driven trends and avoiding false breakouts caused by the pair's typical high volatility.

Zero-Line Crossover
This is the simplest trend-following signal indicating a shift in market direction.

• Bullish Signal (Buy): AO crosses from below zero to above zero.
• Bearish Signal (Sell): AO crosses from above zero to below zero.

Apply Filter
It can be 200-SMA or Ichimoku cloud for example.

• Only look for Buy signals if the price is above the 200-SMA or Ichimoku cloud.
• Only look for Sell signals if the price is below the 200-SMA or Ichimoku cloud.

Best used on daily (D1) charts to capture large macroeconomic swings.