Modified Awesome Indicator Using Smoothed Rate of Change Between Exponential Averages
Summary
The document describes a modified version of the classical Awesome indicator. It calculates the smoothed rate of change between pairs of exponential averages: a short and medium average, and a medium and long average. The resulting design has five inputs: three periods for the exponential averages and two periods for smoothing the rates of change. Default average periods are given, along with a separate example configuration for viewing the indicator on an hourly USDJPY chart.
The text suggests comparing the modified indicator with the classical Awesome indicator, using matching short and medium average periods as a reference. It does not explain entry or exit rules, define how the two smoothed rate-of-change series should be interpreted, or provide backtest results. The chart is mentioned but its details are not included in the supplied text, so there is no visible evidence about signal behavior or performance. Traders would need to specify and test a decision rule before treating the indicator as a strategy.
Key ideas
- The modified indicator smooths rate of change between short, medium, and long exponential averages.
- Two additional periods control the smoothing of the rate-of-change calculations.
- The document provides default inputs and an example configuration for an hourly USDJPY chart.
- It proposes comparison with the classical Awesome indicator but gives no performance evidence.
- No trading rules are specified for acting on the indicator.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.