What it does
The Awesome Oscillator (AO), by Bill Williams, measures market momentum as the difference between a 5-period and a 34-period simple moving average, both computed on bar midpoints (high plus low over 2) rather than closes. It is drawn as a histogram around zero, usually colored green when a bar is higher than the previous one and red when lower. The 5/34 midpoint construction is meant to compare recent drive with the broader backdrop.
How to add it
Click Indicators (ƒx) in the header.
Search “Awesome Oscillator” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Trade zero-line crosses: AO crossing above zero signals short-term momentum overtaking the longer baseline (bullish), and below zero bearish.
- Use the twin peaks setup: two successive AO troughs below zero where the second is shallower, followed by a green bar, is a classic buy pattern.
- Trade the saucer: three bars above zero where a red, lower bar is followed by a green, higher bar signals momentum resuming upward.
- Confirm with structure: AO signals work best as triggers at support/resistance or with the larger trend rather than in isolation.
Inputs
This indicator has no configurable inputs — it works out of the box.
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| AO(5,34) | histogram | #000080 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Zero | 0 |
Level values, colors and line styles are editable in settings.
Tips
- Double-click the plot to open settings directly, skipping the legend hover.
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
- Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.
Watch out for
- Built from two SMAs, AO lags and whipsaws around the zero line in ranging markets.
- Its named patterns are discretionary enough that two traders can read the same histogram differently.