A Smoothed Awesome Oscillator for Volatile Pairs

Summary

The document describes a modification to Bill Williams’s Awesome Oscillator, intended for short-term trading on volatile currency pairs. It recommends a 15-minute chart and says the modified version uses the current and previous median average prices, producing a smoother indicator than the standard version. The stated aim is to capture relatively small price moves, around 100 points.

The text offers a qualitative comparison of modified and standard indicator plots, but provides no systematic test, entry or exit rules, or evidence of measured performance. It also says the modified oscillator can give misleading signals in flat markets: a buy reading in such conditions may be worth interpreting as a possible sell instead. That counter-signal suggestion is not specified as a tested rule, and the document gives no guidance on risk controls or how to identify a flat market.

Key ideas

• The modified oscillator incorporates current and previous median average prices.
• The author recommends using it on a 15-minute chart for volatile currency pairs.
• The method is presented as a way to capture small price movements.
• The document warns that signals may reverse in flat markets and gives no performance testing.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.