Awesome Oscillator

This oscillator looks at the difference in fast and slow moving averages, it is concerned with the momentum of the market. The speed of the moving average depends on the amount of average price moves in a specific timeframe – more movement is a fast moving average, and less is a slow moving average.

In general when the indicator is above zero (fast moving) then traders should go long, and when it is below zero (slow moving) then traders should go short.

A green line is shown when the indicator is increasing, this indicates a bull trend.

A red line is shown when the indicator is decreasing, this indicates a bear trend.

Signals

Trader’s decision to buy or sell should be based on at least three bars. The basic rule is that where the first two bars are red and then the third is green you should buy the currency, and when the first two bars are green and then third is red then it indicates a coming downward trend and hence you should sell the currency.

Calculation
= (SMA * (Median (Median Price in 5 Periods)) – (SMA * (Median Price in 34 Periods))
SMA = Simple Moving Average
Median Price = Midpoint value of the 5 or 34 prices