The Awesome Oscillator on IQ Option: A Powerful Technical Indicator for IQ Option Traders

About the Awesome Oscillator

The Awesome Oscillator is a momentum indicator that uses the difference between two moving averages to calculate its values. The indicator is calculated by subtracting a 34-period simple moving average (SMA) from a 5-period SMA. The values generated by the indicator oscillate around a zero line, with positive values indicating bullish momentum and negative values indicating bearish momentum.

The Awesome Oscillator Formula

The formula for the Awesome Oscillator is as follows:

AO = SMA(5) – SMA(34)

Where:

AO = Awesome Oscillator
SMA = Simple Moving Average
5 = 5-period SMA
34 = 34-period SMA

The Awesome Oscillator generates two types of signals – bullish and bearish. A bullish signal is generated when the Awesome Oscillator values move from negative to positive. Conversely, a bearish signal is generated when the Awesome Oscillator values move from positive to negative.

How to Add the Awesome Oscillator on IQ Option

Adding the Awesome Oscillator on IQ Option is easy. Here’s how to do it:

Step 1: Log in to your IQ Option account.

Step 2: Select the asset you want to trade and the timeframe you want to use.

Step 3: Click on the “Indicators” button on the left-hand side of the screen.

Step 4: Select “Awesome Oscillator” from the list of indicators.

Step 5: The Awesome Oscillator will be added to your chart.

How to Trade Using the Awesome Oscillator on IQ Option

The Awesome Oscillator can be used in a variety of ways to identify potential trading opportunities. Here are some strategies you can use:

1. Crossing the zero line: As mentioned earlier, the Awesome Oscillator generates bullish signals when its values move from negative to positive and bearish signals when its values move from positive to negative. When the Awesome Oscillator crosses the zero line, it is considered a strong signal to enter a trade. For example, if the Awesome Oscillator values cross from negative to positive, it is a signal to buy the asset.
2. Divergence: Divergence occurs when the price of an asset and the Awesome Oscillator values move in opposite directions. This is a strong signal that a trend reversal may be imminent. If the price of an asset is making higher highs while the Awesome Oscillator values are making lower highs, it is a bearish divergence. Conversely, if the price of an asset is making lower lows while the Awesome Oscillator values are making higher lows, it is a bullish divergence.
3. Twin peaks: A twin peaks pattern occurs when the Awesome Oscillator generates two peaks above the zero line. The second peak is higher than the first peak. This is a signal that the bullish momentum is strengthening. Conversely, a twin peaks pattern below the zero line is a signal that the bearish momentum is strengthening.

Awesome Oscillator Divergence

Divergence is a powerful signal that traders can use to identify potential trend reversals. Divergence occurs when the price of an asset and the Awesome Oscillator values move in opposite directions. This can be a sign that the momentum is weakening and a reversal is imminent.

There are two types of divergence – bullish and bearish. A bullish divergence occurs when the price of an asset is making lower lows while the Awesome Oscillator values are making higher lows. This indicates that the bullish momentum is still present, despite the price of the asset trending downward. Conversely, bearish divergence occurs when the price of an asset is making higher highs while the Awesome Oscillator values are making lower highs. This indicates that the bearish momentum is still present, despite the price of the asset trending upward.