Accelerator Oscillator Zero-Cross Strategy Using Awesome Oscillator Momentum

Summary

This strategy calculates the Accelerator Oscillator as the difference between the Awesome Oscillator and a short moving average of that oscillator. The Awesome Oscillator itself is represented by the difference between fast and slow simple moving averages of the midpoint price. The resulting value is treated as a measure of change in oscillator momentum: positive readings set a long position and negative readings set a short position. An option reverses those directions.

The document explains the indicator’s relationship to the Awesome Oscillator and frames it as a possible early signal of trend reversals. The code colors the histogram according to whether the oscillator is rising or falling, but direction for entries comes from its sign. No exits beyond opposite-direction entries, protective stops, transaction assumptions, or performance results are described. The author recommends educational or paper-trading use, so the proposed signal should not be taken as evidence of profitability or a validated trading system.

Key ideas

• The Accelerator Oscillator subtracts a short moving average of the Awesome Oscillator from the Awesome Oscillator.
• The Awesome Oscillator is built from fast and slow moving averages of midpoint price.
• Positive oscillator values trigger long entries and negative values trigger short entries.
• A reverse setting swaps the long and short directions.
• No performance evidence or explicit protective exits are provided, and the author limits the stated use to learning or paper trading.

Tags

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