Volume-Weighted Awesome Oscillator for Trend Signals
Summary
The document describes a volume-weighted variant of Bill Williams’s Awesome Oscillator. The standard indicator compares a short moving average of bar midpoints with a longer moving average of the same price measure. In this version, volume-weighted moving averages replace simple moving averages, so changes in trading volume affect the indicator more directly.
The suggested use is to watch the indicator’s color changes, especially around its zero line, as possible signs of a trend change. The note offers no formula details for the volume weighting, chart examples, backtest, or performance evidence. It also does not explain how to confirm signals or manage risk, so the described zero-cross and color cues should be treated as a basic interpretation rather than a tested standalone strategy.
Key ideas
- The standard Awesome Oscillator compares short and long moving averages of bar midpoints.
- This variant substitutes volume-weighted moving averages for simple moving averages.
- Volume weighting makes changes in trading volume influence the indicator.
- Color changes and moves around the zero line are presented as possible trend-change signals.
- The document provides no empirical test or risk-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.