Awesome Oscillator
The Awesome Oscillator is used to help predict price movements of a given security. It is calculated by finding the difference between the 5 period moving average and the 34 day moving average both built across the central points of the bars (h+l)/2. The awesome oscillator can be placed at the bottom of the chart. Each day is either a line up or a line down these days are called bars. When the bars are trending down and then start moving up it is considered a buy signal. When the bars are trending up but then start moving down it is considered a sell signal. 
Also remember in addition to seeing the lines change direction you also want to see them change colors. If the indicator goes from red to green it is a buy signal. If it goes from green to red it is a sell signal.
Other Oscillators There are many different indicators to use when examining a stock. Here are a few more. ADX - This indicator was created in order catch the trend on stocks. Ease of Movement - This indicator takes volume into consideration with price. RSI - This is a momentum indicator and attempts to show you where the current trend of a stock is. Other Oscillators |
