Awesome Oscillator Signals and MQL5 Trading-System Examples
Summary
The article explains the Awesome Oscillator (AO), defined as the difference between 5-period and 34-period simple moving averages of median price. It presents the indicator as a momentum measure and describes three basic signal rules: whether AO is above or below zero, whether its current reading exceeds the average of the previous five readings, and whether AO and price jointly confirm direction relative to a 50-period exponential moving average.
It outlines how to turn these rules into chart signals and illustrates implementing them in MQL5 with MetaTrader 5, including retrieving indicator values and comparing them with thresholds or moving averages. The examples are educational signal generators, not a demonstrated profitable system: the text gives no backtest results and explicitly says the rules may need optimization and should be tested before use. It also recommends combining AO with other technical tools for confirmation.
Key ideas
- AO is calculated as the 5-period simple moving average of median price minus the 34-period average.
- An AO reading above zero is treated as bullish, while a reading below zero is treated as bearish.
- Comparing current AO with the average of its previous five values is used as a simple strength test.
- A combined rule signals buys or sells when AO direction agrees with price relative to a 50-period exponential moving average.
- The MQL5 examples generate chart comments, and the rules require testing before practical use.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.