A signed momentum histogram around a zero baseline. Bars above zero show short-term momentum leading; bars below show it lagging. Color/sign changes mark momentum shifts.
The Awesome Oscillator is a momentum histogram that compares a short-term average of price to a longer-term one. Bars above the zero line mean short-term momentum is leading (bullish); bars below mean it is lagging (bearish).
How it works
It subtracts a longer simple moving average of the bar midpoints from a shorter one and plots the difference as a histogram around zero. As short-term momentum builds, the bars push further above the baseline; as it fades, they drop below. The period (default 34) sets the longer averaging window.
Configuration
periodscalar
The longer averaging window the short-term average is compared against. Larger = smoother, slower-turning bars; smaller = quicker but choppier. 34 is the classic default.
Connects to
Feeds into
Examples
Long bias when the histogram is above zero; short bias when it is below.
Treat the first bar that flips from below to above zero as a momentum-turn cue inside a trend filter.
Common mistakes
Acting on a single bar's color flip — the histogram whipsaws across zero in ranging markets.
Reading the bar height as a price target; it only measures momentum, not distance.