How to configure Awesome Oscillator at IQ Option chart
Secondly, click on the indicator button and search for the indicator name in the menu.
You can change the period of the indicator. however, I won’t suggest you to do so. as it works best with the default settings.
Awesome Oscillator Overview
The Awesome Oscillator is one of the most widely used indicators. the indicator was developed by the legendary trader Bill Williams. this indicator uses a series of histogram lines to measure the market momentum or the possible trends and reversals.
The Indicator uses a 34-period simple moving average line and can be calculated by the formula.
AO = SMA ( Median Price, 5) – SMA (Median price, 34)
Median Price = High + Low / 2
SMA = Simple Moving average
How to place trades using Awesome Oscillator on IQ Option
Placing trades with Awesome Oscillator is quite simple you just need to check the histogram lines. If we see the big green spikes above the 0 point. It signals an upcoming bullish trend and we can place a buy trade here. similarly, If we see the big red spikes below line 0 point. It signals an upcoming bearish trend and we can open a sell trade.
Awesome Oscillator is a powerful indicator that can help you find the upcoming bullish and bearish trends. however, if you want to take out the best from Awesome Oscillator you should combine the indicator with other trend indicators like Moving average or you can even use Support and Resistance to confirm your calls. while combining the indicator. when you have found a bullish trend on Awesome Oscillator the price or the candles should be near the Support level and vice versa when you have you got a bearish trend with Awesome Oscillator the price should be near the Resistance level.
So, this is the end of this article and I hope you have found this article helpful. the best thing you can do is try this trading strategy on IQ Option demo account and shift to real account once you are confident enough.
I wish you the very best of luck 🙂