Technical
What is Awesome Oscillator (AO)?
The gap between a 5-period and 34-period simple moving average of the bar midpoint, plotted as a histogram around zero.
Formula
AO = SMA(Midpoint, 5) − SMA(Midpoint, 34), where Midpoint = (High + Low) ÷ 2
How to Interpret
Zero-line crosses are the primary signal — AO crossing above zero says short-term drive has overtaken the longer baseline. Histogram color/slope changes (momentum building vs. fading) front-run the crosses. Uses bar midpoints instead of closes to dampen end-of-day noise.
Typical Ranges
No fixed thresholds — the zero line and histogram shape carry the information. Functionally a cousin of MACD with fixed settings; using both is largely double-counting.
Find Stocks Using This Signal
Screen US and Indian stocks by Awesome Oscillator in the Technical screener.