Hi Let me introduce my Bill Williams. Awesome Oscillator (AO) script. This indicator is based on Bill Williams` recommendations from his book "New Trading Dimensions". We recommend this book to you as most useful reading. The wisdom, technical expertise, and skillful teaching style of Williams make it a truly revolutionary-level source. A must-have new book for stock and commodity traders. The 1st 2 chapters are somewhat of ramble where the author describes the "metaphysics" of trading. Still some good ideas are offered. The book references chaos theory, and leaves it up to the reader to believe whether "supercomputers" were used in formulating the various trading methods (the author wants to come across as an applied mathemetician, but he sure looks like a stock trader). There isn't any obvious connection with Chaos Theory - despite of the weak link between the title and content, the trading methodologies do work. Most readers think the author's systems to be a perfect filter and trigger for a short term trading system. He states a goal of 10%/month, but when these filters & axioms are correctly combined with a good momentum system, much more is a probable result. There's better written & more informative books out there for less money, but this author does have the "Holy Grail" of stock trading. A set of filters, axioms, and methods which are the "missing link" for any trading system which is based upon conventional indicators. This indicator plots the oscillator as a histogram where periods fit for buying are marked as blue, and periods fit for selling as red. If the current value of AC (Awesome Oscillator) is over the previous, the period is deemed fit for buying and the indicator is marked blue. If the AC values is not over the previous, the period is deemed fir for selling and the indicator is marked red.
I have all 3 of Bill's books and he says that he originally borrowed this from another trader. The other trader was using it as 5 avg and 35 avg, Bill found it worked better at 5 and 34. What I find interesting is that Bill made a big thing about the Alligator being created on a supercomputer and when the results were in found that it used Fibonacci numbers (5,8,13), however, nowhere in his books or online have I ever found that he mentioned or even seemed to notice that the Awesome Oscillator was using Fibonacci numbers (5 and 34).
BTW, I recently wrote a Awesome Oscillator indicator for MT4 and instead of using histograms, I used line drawing instead. Personally, I found that this helps with reading the AO, maybe because it cuts down on some of the visual clutter.
BTW, I recently wrote a Awesome Oscillator indicator for MT4 and instead of using histograms, I used line drawing instead. Personally, I found that this helps with reading the AO, maybe because it cuts down on some of the visual clutter.