Category: Momentum · Complexity: ★★☆☆☆ (2/5)
Tags: momentum, live-overlay, price
Live chart overlay: AO
Formula
AO = SMA(HL2, 5) − SMA(HL2, 34)
How to read
Histogram above zero = short MA above long MA (bullish momentum). Saucer and twin-peak patterns are the classic Bill Williams reads.
Limitations
Histogram patterns are discretionary. Lags like any MA difference.
Typical settings
5 / 34 on midpoint
Awesome Oscillator is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.