Tuesday, November 4, 2008

Crest Toothpaste Problems

Lesson 21 - Awesome Oscillator - Awesome Oscillator

Awesome Oscillator Technical Indicator (AO) to us Awesome Oscillator is simple moving average of 34 periods, which is drawn in through the bar midpoints (Maximum + Minimum) / 2, which is subtracted from an average 5-period simple moving, built through the center points of the bar (Maximum + Minimum) / 2. It shows clearly what is happening with the market forces at present.

Signs Purchase Types

Saucer (Saucer)

This is the only signal to buy comes when the bar graph is higher than the zero line. One must keep in mind: 1 .-

saucer signal is generated when the bar graph reversed direction from downward to upward. The second column is lower than the first and is red. The third column is higher than the second color is green.
2 .- The dish-type signal is generated by the bar graph and must have at least three columns.

Keep in mind, all Awesome Oscillator columns must be on the zero line for the saucer signal to be employed.

zero line crossing

The buy signal is generated when the bar graph passes the area of \u200b\u200bnegative values \u200b\u200bto the positive area. This happens when you cross the zero line. With respect to this signal should be taken into account:

1 .- signal is generated only need two columns only.
2 .- The first column should be under the zero line and the second to cross the zero line to the positive area.
3 .- Generation of simultaneous signals for buying and selling is impossible. Dos Picos

(Two Pikes)
This is the only signal to buy that can be generated when the values \u200b\u200bof the bars are below the zero line. When considering this signal, please note:

1 .- The signal is generated when you have a minimum peak (the lowest minimum) which is under the zero line and is followed by a minimum peak of lesser magnitude than the previous (smaller absolute value, ie closer to the zero line.
2 .- The bar graph must be below the zero line between the two peaks. If the bar crosses the zero line on the section between the peaks, the signal to buy does not work. However, a different signal to buy will be generated - Line crossing zero.
3 .- Each new peak in the bar graph should be higher (a negative number of smaller absolute value that is closer to the zero line) than the previous peak.
4 .- If an additional bar has a higher peak is formed (that is closer to the zero line) and bar graphs have not crossed the line from scratch, buying an additional signal will be generated. Signs

Sales

Sell signals are identical Awesome Oscillator signals to buy. The saucer signal is reversed and is below zero. Cross the zero line is decreasing - the first column of it is above zero, the second one is under it. The signal of the two peaks higher than the zero line and is also invested. Calculation



Awesome Oscillator Technical Indicator (AO) to us Awesome Oscillator is a simple moving average of 34 periods, which is drawn in through the bar midpoints (Maximum + Minimum) / 2 , which is subtracted simple moving average of 5 periods, built through the center points of the bar (Maximum + Minimum) / 2. Median Price

= (Maximum + Minimum) / 2 AO
= Simple Moving Average (Median Price, 5) - Simple Moving Average (Median Price, 34)

Here's a sample USD FOREX market / JPY using the AO using the type crossing the zero line.

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