Awesome Oscillator (AO) – FX Replay User Guide

The Awesome Oscillator is a momentum-based histogram that compares short- and long-term momentum using bar midpoints, offering a smoother, more dynamic view of price action.

How It’s Calculated

AO = 5-period SMA – 34-period SMA
Both SMAs are applied to the bar midpoint: (High + Low) ÷ 2

How to Use It on FX Replay

• Above Zero Line: Bullish momentum (short-term > long-term)
• Below Zero Line: Bearish momentum (short-term < long-term)
• Green Bars: Momentum increasing in the current direction
• Red Bars: Momentum slowing or reversing

Actionable Trade Uses

• Momentum Shifts: Shrinking green bars in an uptrend can warn of a pullback or reversal.
• Trend Confirmation: If AO is rising above zero during a breakout, the move is likely valid—pair with structure or moving averages.
• Divergence Setup: Price making higher highs while AO makes lower highs signals momentum divergence.
• Reversal Readiness: AO crossing from negative to positive (or vice versa) can confirm reversal-based strategies.

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