Oscilador Awesome de Bill Williams

Los mejores corredores de opciones binarias 2020:
  • Binarium
    Binarium

    1er lugar! El mejor broker de opciones binarias!
    Ideal para principiantes! Entrenamiento gratis! Bonos de registro!

  • FinMax
    FinMax

    2do lugar! Gran corredor!

Bill Williams Awesome Oscillator Strategy – Big Profits, Small Losses

The Bill Williams Awesome Oscillator strategy is a momentum strategy that takes advantage of the most immediate trend. This strategy is similar to our Breakout Triangle Strategy. This is because it will only give you entry signals when the momentum is confirming the price action shift. Our team at Trading Strategy Guides puts a lot of effort into developing strategies that provide you big wins with small losses. In essence, this means that from a risk management perspective, you’ll always trade with a superior risk to reward ratio. The AO Indicator has been called the “super indicator” because of the incredible results some traders have had using it.

The Bill Williams Awesome Oscillator strategy can be applied across different markets; be it stocks, commodities, indices, and Forex currencies. The preferred time frame for the Bill Williams Awesome Oscillator strategy is the daily time frame. This is because, after extensive research and backtesting, our team at Trading Strategy Guides has learned that the daily time frame produces the best performance.

Now, if you’re a day trader and you like being in an out of your trades fast, don’t you worry we’ve got your back. Our favorite day trading strategy Day Trading Price Action- Simple Price Action Strategy can teach you how to profitably daytrade any market. Also, read about the Forex Mentors and the best investment you can make.

Before we move forward, we must define the indicators you need to trade the Bill Williams Awesome Oscillator strategy and how to use Awesome oscillator indicator.

The only indicator you need is the:

Awesome oscillator indicator: The Awesome Oscillator indicator is a histogram – that is similar to the MACD indicator – displaying the market momentum of a recent number of periods compared to the momentum of a larger number of previous periods.

If you’re interested in learning more about the MACD indicator, we recommend studying the MACD Trend Following Strategy- Simple to learn Trading Strategy which is an out of the box trend following strategy.

What about the indicator setting?

The Awesome Oscillator indicator uses inbuilt default settings 5 vs. 34 periods.

Los mejores corredores de opciones binarias 2020:
  • Binarium
    Binarium

    1er lugar! El mejor broker de opciones binarias!
    Ideal para principiantes! Entrenamiento gratis! Bonos de registro!

  • FinMax
    FinMax

    2do lugar! Gran corredor!

So, how does it work?

Well, the Awesome oscillator indicator’s histogram (see chart below) is derived from the price chart. The Awesome Oscillator histogram is a 34-period simple moving average. This histogram is 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

Awesome Oscillator = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34)

If the AO histogram is crossing above the zero line, that’s indicative of bullish momentum. Conversely, when it crosses below that’s indicative of bearish momentum.

Now, let’s move forward to the most important part of this article, the trading rules of the Bill Williams Awesome oscillator strategy.

Now, before we go any further, we always recommend to note down the trading rules on a piece of paper.

Let’s get started…

The Strategy Rules

(Rules for A Buy Trade)

Step #1: Check if the Awesome oscillator indicator is below zero

First, we want to make sure the Awesome Oscillator indicator is below zero. This first rule is part of a three-rule pattern called the Awesome Oscillator Twin Peaks. Don’t worry, this will start to make more sense to you once we go through all the three rules.

This brings us to the next rule.

Step #2: Check if the Awesome Oscillator Indicator Displays Two Swing Lows and the Second Low is Higher than the First.

Second, you need to check if there are two consecutive swing lows of the awesome oscillator histogram and the second low is higher than the first one. These two swings will form the twin peaks and from here comes the term Awesome Oscillator Twin Peaks.

There is one more rule for the Awesome oscillator Twin Peaks pattern to be validated.

Step #3: Check if the Awesome Oscillator Indicator histogram after the Second Low is Green

We need the Awesome oscillator indicator histogram after the second low to immediately turn green. This will validate the Awesome oscillator Twin Peaks pattern. When the AO histogram turns green it indicates buyers stepping in, but only a break above the zero line will signal a real shift in the market sentiment.

Now the Awesome oscillator Twin Peaks pattern has completed. But, we still don’t have confirmation that the buyers have taken the lead, which brings us to the next step of the Bill Williams Awesome oscillator strategy.

Step #4: Wait for the Awesome Oscillator Histogram to Break Above the Zero Line Before Buying at the Current Market Price

As we already learned, the Awesome oscillator indicator fluctuates between positive momentum when trading above the zero line and negative momentum when trading below the zero line. You can notice that the AO histogram bars can change from green to read while she stays above/below the zero line. This indicates various degrees of momentum strength; However, the real shift in sentiment happens once the AO histogram crosses above the zero line which is why this is our entry signal.

At this point, your trade is opened, but we still need to determine where to place our protective stop loss and take profit orders, which brings us to the next step of our strategy.

Step #5: Place Your Protective Stop Loss below the Most Recent Swing Low which Should Align with the Second Swing Low of the AO Twin Peaks Pattern.

The Awesome oscillator histogram should normally align with the price action. In this regard whenever the price forms a swing low this should be visible in the AO histogram as well.

We don’t want to add any buffer below the swing low level because any slightly break below the swing low will invalidate the AO Twin peaks pattern.

Now, the only component that needs to be clarified is where to take profit, which brings us to the final step of the Bill Williams Awesome oscillator strategy.

Step #6: Take Profit as Soon as the Awesome Oscillator Histogram Posts Two Consecutive Red Bars

We take profit at the earliest sign that the market is showing us the first sign of weakness. In this regard, when the AO histogram post two consecutive red bars we want to close our position and take profit as there is a high probability the market will reverse from thereafter.

Note** The above was an example of a buy trade… Use the same rules – but in reverse – for a sell trade. In the figure below you can see an actual SELL trade example using the Bill Williams Awesome oscillator strategy.

The Bill Williams Awesome oscillator strategy is a great strategy if you’re a momentum trader. We’re not looking to catch tops and bottoms, but we seek to enter the market when the momentum has shifted in our favor. This is a more sophisticated way to trade breakouts because breakouts also signal a shift in momentum. If you’re a fan of breakout trading, we recommend reading the Breakout Triangle Strategy, which will teach you how to correctly trade breakouts.

The most popular Bill Williams Awesome oscillator strategy is trading the Awesome Oscillator Twin Peaks pattern because most of the time it signals trades with superior risk to reward ratio.

Thank you for reading!

Please leave a comment below if you have any questions about Bill Williams Awesome Oscillator Strategy!

Also, please give this strategy a 5 star if you enjoyed it!

(23 votes, average: 4.48 out of 5)
Loading.

Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders!

Oscilador Maravilhoso

O Indicador Técnico Awesome Oscillator de Bill Williams (AO) é uma simple moving average de período 34, traçada através dos pontos médios das barras (H+L)/2, subtraída de uma simple moving average de período 5, construído nos pontos centrais das barras (H+L)/2. Ele nos mostra claramente o que está acontecendo com a força do mercado no momento presente.

Sinais para compra

«Saucer» é o único sinal de compra que surge quando o gráfico de barras está acima da linha do zero. Deve-se ter em mente:

  • o sinal saucer é gerado quando o gráfico de barras inverte a sua direção, vindo de baixo para cima. A segunda coluna é menor do que a primeira, e é de cor vermelha. A terceira coluna é maior do que a segunda, e é de cor verde;
  • para o sinal saucer ser gerado, o gráfico de barras deve ter, pelo menos, três colunas.

Tenha em mente que todas as colunas do Awesome Oscillator devem estar acima da linha do zero para o sinal saucer ser usado.

O «Cruzamento da linha do zero» é um sinal de compra gerado quando o gráfico de barras passa da área de valores negativos ao dos positivos. Ele aparece quando o gráfico de barras cruza a linha do zero. No que se refere a este sinal:

  • para este sinal ser gerado, apenas duas colunas são necessárias;
  • a primeira coluna está abaixo da linha do zero, e a segunda atravessa a linha (transição de um valor negativo para um positivo);
  • a geração ao mesmo tempo de sinais para compra e venda é impossível.

«Duas lanças (Two pikes)» é o único sinal de compra que pode ser gerado quando os valores do gráfico de barras estão abaixo da linha do zero. No que se refere a este sinal, por favor, tenha em mente:

  • o sinal é gerado quando se tem uma lança que aponta para baixo (o mínimo mais baixo) que se situa abaixo da linha do zero, e é seguida por uma outra lança para baixo, que é um pouco mais elevada que a lança anterior para baixo (um valor negativo com um valor menor absoluto, o qual é, portanto, mais perto da linha do zero);
  • o gráfico de barras é para ser abaixo da linha do zero entre as duas lanças. Se a gráfico de barras cruza a linha do zero no trecho compreendido entre as lanças, o sinal de compra não funciona. No entanto, um sinal diferente para compra será gerado – cruzamento de linha do zero;
  • cada nova lança no gráfico de barras é para ser mais alta do que a lança anterior (um número negativo de um valor absoluto menor, que é mais próximo da linha do zero);
  • se um lança maior adicional é formada (que está mais perto da linha do zero) e o gráfico de barras não tenha atravessado a linha do zero, um sinal adicional para compra será gerado.

Sinais para venda

Sinais de venda do Awesome Oscillator são idênticos aos sinais para compra. O sinal saucer é inverso e está abaixo de zero. O Cruzamento da linha do zero decresce — a primeira coluna está acima do zero, a segunda é sob ele. O sinal duas lanças é maior na linha do zero e também é invertido.

Você pode testar os sinais de negociação desse indicador, criando um expert com ajuda do MQL5 Wizard.

Cálculo

AO é uma simple moving average de período 34, traçada através dos pontos médios das barras (H+L)/2, subtraída de uma simple moving average de período 5, construído nos pontos centrais das barras (H+L)/2.

PREÇO MÉDIO = (MÁXIMA + MÍNIMA) / 2

AO = SMA (PREÇO MÉDIO, 5) – SMA (PREÇO MÉDIO, 34)

PREÇO MÉDIO – preço médio;
MÁXIMA – preço máximo da barra;
MÍNIMA – preço mínimo da barra;
SMA – média móvel simples.

Awesome Oscillator

L’Indicateur Technique de Bill Williams ‘Awesome Oscillator’ (AO) est une moyenne mobile simple de 34 périodes, tracée à travers des points milieux des barres (H+L)/2, qui est soustraite de la moyenne mobile simple de 5 périodes, construite à travers les points milieux des barres (H+L)/2. Il nous montre très clairement ce qui arrive à la force motrice du marché au moment présent.

Signaux d’achat

Le «Saucer» est le seul signal d’achat qui arrive quand l’histogramme est plus élevé que la ligne de zéro. Il faut garder à l’esprit que :

  • Le signal «saucer» est généré lorsque le graphique en barres inverse sa direction de la baisse à la hausse. La deuxième colonne est inférieure à la première, et est de couleur rouge. La troisième colonne est supérieure à la seconde et est de couleur verte ;
  • Pour que le signal «saucer» puisse être généré, le graphique en barres doit avoir au moins trois colonnes.

Gardez à l’esprit que toutes les colonnes de l’Awesome Oscillator devraient être au-dessus de la ligne zéro pour que le signal saucer puisse être utilisé.

«Le franchissement de la ligne de zéro» est le signal d’achat généré lorsque le graphique en barres passe de la zone de valeurs négatives à celles positives. Il arrive quand l’histogramme franchit la ligne de zéro. En ce qui concerne ce signal :

  • pour que ce signal puisse être généré, seules deux colonnes sont nécessaires ;
  • la première colonne doit être en dessous de la ligne de zéro, la seconde doit la traverser (passage d’une valeur négative à une valeur positive) ;
  • la génération simultanée de signaux d’achat et de vente est impossible.

«Deux pics» est le seul signal d’achat qui peut être généré lorsque les valeurs de l’histogramme sont en dessous du seuil de zéro. En ce qui concerne ce signal, veuillez gardez à l’esprit que :

  • le signal est généré, lorsqu’un pic vers le bas (le plus bas) est en dessous de la ligne zéro et est suivi par un autre pic pointant vers le bas qui est un peu plus élevé (chiffre négatif avec une valeur absolue moindre, qui est donc plus proche de la ligne de zéro), que le pic précédent orienté vers le bas ;
  • l’histogramme doit être en dessous de la ligne de zéro entre les deux pics. Si l’histogramme franchit la ligne de zéro dans la section entre les pics, le signal d’achat ne fonctionne pas. Cependant, un autre signal d’achat sera généré – lors du passage de la ligne de zéro ;
  • chaque nouveau pic de l’histogramme doit être plus élevé (un nombre négatif d’une valeur absolue moindre qui est plus proche de la ligne de zéro) que le pic précédent ;
  • si un pic supérieur supplémentaire est formé (qui est plus proche de la ligne de zéro) et que l’histogramme n’a pas franchi la ligne de zéro, un signal supplémentaire d’achat sera généré.

Signaux de Vente

Les signaux de l’Awesome Oscillator de vente sont identiques aux signaux d’achat. Le signal saucer est reçu et est en dessous de zéro. Le franchissement de ligne de zéro est à la baisse – la première colonne est au dessus de la ligne de zéro, la seconde est en dessous. Le signal des deux pics est supérieur à la ligne zéro et est également inversé.

Vous pouvez tester les signaux de trading de cet indicateur en créant un Expert Advisor avec le MQL5 Wizard.

Méthode de Calcul

AO est une Moyenne mobile simple de 34 périodes, tracée avec les points centraux des barres (H+L)/2, et soustraite de la Moyenne Mobile simple de 5 périodes, dessinée à travers les points centraux des barres (H+L)/2.

PRIX MEDIAN = (HIGH + LOW) / 2

AO = SMA (PRIX MEDIAN, 5) – SMA (PRIX MEDIAN, 34)

MEDIAN PRICE – prix médian ;
HIGH – prix le plus haut de la barre ;
LOW – prix le plus bas de la barre ;
SMA – Moyenne Mobile simple.

Los mejores corredores de opciones binarias 2020:
  • Binarium
    Binarium

    1er lugar! El mejor broker de opciones binarias!
    Ideal para principiantes! Entrenamiento gratis! Bonos de registro!

  • FinMax
    FinMax

    2do lugar! Gran corredor!

Escuela de opciones binarias
Deja un comentario

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: