Momentum trading strategies offer traders an easy way to exploit short and mid-term trends. Our team at Trading Strategy Guides puts a lot of effort into developing strategies that provide you with big wins and with small losses. The Bill Williams Awesome Oscillator strategy can be applied across different markets, including 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.

Our favorite day trading strategy Day Trading Price Action- Simple Price Action Strategy can teach you how to profitably day trade 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 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. The Awesome Oscillator histogram is a period simple moving average.

However, there are other unique signals like the Awesome Oscillator saucer signal or the Twin Picks or bullish bearish divergences. When the AO is crossing above the zero line it shows that the short-term momentum is rising faster than the long-term momentum. This information is extremely useful because a shift in the trend direction will always appear first in the short-term trend and then it will spread out on the long-term trend.

Now, you might be familiar with the zero-line crossover signal since this is a common trade signal with many technical indicators. However, the Awesome Oscillator tends to give far fewer false signals when compared to other oscillators. Compare that with the MACD indicator which generated far more signals and inevitably far more false signals. During strong trending markets, the Awesome Oscillator will keep you riding the trend while other momentum indicators will stop you out on a minor pullback or retracement.

The AO saucer signal helps you identify pure momentum continuation trades. In other words, if you miss the boat on a trend signal the Awesome Oscillator saucer will give you a second chance to enter a trend or to simply build up your forex position.

The saucer setup is formed by 3 consecutive bars on the AO histogram either above the zero line or below the zero line. If you want to learn how to change the AO settings yourself, simply click on the TradingView gear icon, AO Style and choose columns instead of the histogram.

As you can probably tell, the awesome oscillator saucer gauges short-term changes in the speed of the trend. Now, before we go any further, we always recommend noting down the trading rules on a piece of paper.

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. 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.

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. 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. 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.

When you tune the settings and see that everything is working, you can apply it in your binary options trading strategy. The awesome oscillator will fluctuate between positive and negative territory. A positive reading means the fast period is greater than the slow and conversely, a negative is when the fast is less than the slow. The AO histogram crossing above the zero line indicates bullish momentum.

Conversely, when it crosses below, it is indicative of bearish momentum. When you trade in your terminal, you can see the signal of a trend change in color in the Awesome Oscillator. The Awesome Oscillator works with any timeframes. It is also good for turbo options however you will get a lot of false readings during a choppy market.

The recommended expiration period should be more than the time of formation of two candles. Awesome Oscillator can predict divergence and should be used as an additional signal for opening a transaction.

However, you as a trader need to be prepared for the harsh reality of trading. Beginning traders should read more about the AO indicator altogether and prepare to combine the AO with other indicators. Find out for yourself if you understand the AO and give a try to a demo account with the Pocket Option. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Then, you are waiting for the SMA to cut through the price bar.

Look at the AO histogram. If it is showing a green bar, you have got a confirmation for your trade. Open a long position that lasts 5 minutes. Signal to open 5-minute up trade.

Analogically, you are waiting for the downtrend now. Once it has begun, you should follow the SMA line. Wait for the moment when it crosses the price bar. Then, check with the AO histogram. The colour of the bar should be red. Now, you can open a short transaction. With 1-minute as a chart time frame , your option should last 5 minutes.

Signal to open 5-minute down trade. The combination of the SMA and the Awesome Oscillator is quite easy to use.

Especially, with the option to save your favourite templates. It just makes your trading smoother. All you need to do is click on the strategy name you have saved before, and all the indicators needed will be added to the chart.

Then, you will have to show some patience. Patience is very important in the trading business. It is not wise to rush into the trade. You must always wait for confirmation from both, the SMA and the Awesome Oscillator. This increases your chances of success. It is also recommended that you give yourself some time to practice new strategies you have learned.

The IQ Option practice account is an excellent place designed for this purpose. After you got hold of using the Awesome Oscillator strategy, you can switch to the live account and start to make profits. Trade now General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds.

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by TradingStrategyGuides Feb 13, All Strategies , Forex Basics , Forex Strategies , Indicator Strategies , Indicators 17 comments. 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.

Momentum trading strategies offer traders an easy way to exploit short and mid-term trends. Our team at Trading Strategy Guides puts a lot of effort into developing strategies that provide you with big wins and with small losses.

The Bill Williams Awesome Oscillator strategy can be applied across different markets, including 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. Our favorite day trading strategy Day Trading Price Action- Simple Price Action Strategy can teach you how to profitably day trade 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 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. The Awesome Oscillator histogram is a period simple moving average. However, there are other unique signals like the Awesome Oscillator saucer signal or the Twin Picks or bullish bearish divergences.

When the AO is crossing above the zero line it shows that the short-term momentum is rising faster than the long-term momentum. This information is extremely useful because a shift in the trend direction will always appear first in the short-term trend and then it will spread out on the long-term trend.

Now, you might be familiar with the zero-line crossover signal since this is a common trade signal with many technical indicators. However, the Awesome Oscillator tends to give far fewer false signals when compared to other oscillators. Compare that with the MACD indicator which generated far more signals and inevitably far more false signals. During strong trending markets, the Awesome Oscillator will keep you riding the trend while other momentum indicators will stop you out on a minor pullback or retracement.

The AO saucer signal helps you identify pure momentum continuation trades. In other words, if you miss the boat on a trend signal the Awesome Oscillator saucer will give you a second chance to enter a trend or to simply build up your forex position. The saucer setup is formed by 3 consecutive bars on the AO histogram either above the zero line or below the zero line. If you want to learn how to change the AO settings yourself, simply click on the TradingView gear icon, AO Style and choose columns instead of the histogram.

As you can probably tell, the awesome oscillator saucer gauges short-term changes in the speed of the trend. Now, before we go any further, we always recommend noting down the trading rules on a piece of paper.

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. 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. 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. 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.

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. Also, check out our guide on the best momentum trading strategies.

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. 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. 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.

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 posts 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. In the figure below you can see an actual SELL trade example using the Bill Williams Awesome oscillator strategy.

This is a more sophisticated way to trade breakouts because breakouts also signal a shift in momentum. 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 a superior risk to reward ratio.

Please leave a comment below if you have any questions about Bill Williams Awesome Oscillator Strategy! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. The Bill Williams Awesome Oscillator is extremely powerful….

Whats your experience with using this indicator? If you never have used this in your trading before try this strategy out and let us know what your results were! Thanks for the article, I think this could be a powerful strategy that could get some really big wins. Hey there! Are you looking for other time frame trading strategies? We have a ton of them you can search around on our blog. Please log in again. The login page will open in a new tab.

After logging in you can close it and return to this page. Bill Williams Awesome Oscillator Strategy — Big Profits, Small Losses by TradingStrategyGuides Feb 13, All Strategies , Forex Basics , Forex Strategies , Indicator Strategies , Indicators 17 comments. The only indicator you need is the: Awesome oscillator indicator. Table of Contents hide. TradingGuides says:.

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Bart Bregman Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there. Submit Feedback. Performance Performance. The cookie is used to store the user consent for the cookies in the category "Other. The Awesome Oscillator is ready to use. You can also get many of the same signals if the added indicators are similar in nature. Please leave a comment below if you have any questions about Bill Williams Awesome Oscillator Strategy!

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