Awesome Oscillator Zero Crossovers Filtered by an EMA

Summary

This strategy pairs zero-line crossovers of the Awesome Oscillator (AO) with a short exponential moving average (EMA) as a directional filter. It enters long when AO crosses above zero while the close is above the EMA, and enters short when AO crosses below zero while the close is below the EMA. The script also defines alert conditions and plots the EMA.

The document gives a rule-based entry concept but no exit logic, position sizing, risk controls, or performance report. Although input fields name fast and slow AO periods, the calculation uses the platform’s built-in AO function, so the strategy’s operative settings may not match those inputs. No empirical evidence is provided for the signal’s profitability, and the rules alone do not establish how it performs across markets or timeframes.

Key ideas

• A long entry requires AO to cross above zero while price is above the EMA.
• A short entry requires AO to cross below zero while price is below the EMA.
• The EMA acts as a directional filter for AO momentum signals.
• The script includes alert conditions and a plotted trend filter, but no defined exits or risk controls.
• The document supplies no backtest evidence, and its named AO period inputs are not used in the displayed calculation.

Tags

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