Awesome Oscillator as a Difference of Median-Price Moving Averages

Summary

This note introduces the Awesome Oscillator (AO) and gives its basic input and calculation. It uses median price, defined as the average of the session high and low, then subtracts a longer-period moving average from a shorter-period moving average. The resulting oscillator expresses the difference between recent and longer-term price smoothing.

The document provides pseudocode but no example values, trading rules, performance evidence, or guidance on choosing the two lookback periods. It therefore explains how to construct the indicator, but does not establish how it should be interpreted or whether it is useful as a standalone signal. Any application would require specifying the periods and testing a trading approach separately.

Key ideas

• AO starts from the midpoint of each period’s high and low.
• The indicator subtracts a longer-period moving average from a shorter-period moving average of that midpoint.
• The note describes the calculation but gives no signal rules or performance results.

Tags

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