High Profits Forex Awesome Oscillator Trend Magic Trading System. Awesome Oscillator (AO) is a momentum indicator reflecting the precise changes in the market driving force which helps to identify the trend’s strength up to the points of formation and reversal.
There are three main signals which may be seen:
- Saucer – three consecutive columns above the nought line the first two of which must be colored red (the second one is lower than the first one) while the third one is colored green and higher than the previous (second) one. Such a formation would be a clear Buy signal whilst inverted and vertically flipped formation would serve as a Sell signal.
- Nought line crossing – the histogram crosses the naught line in an upward direction changing its values from negative to that of positive ones. In this situation we have a Buy signal. The Sell signal would be a reversed pattern.
- Two pikes – the indicator displays a Buy signal when the figure is formed by two consecutive pikes both of which are below the naught line and the later-formed pike is closer to the zero level than the earlier-formed one. The Sell signal would be given by the reverse formation.
Awesome Oscillator Strategy includes 3 ways of trading. The first way is to open a sell position when the oscillator is below the zero line forming a peak, and open a buy position when the oscillator is above the zero line forming a gap.
Another way is to open a sell position when the oscillator forms two peaks above the zero line, where the second high is lower than the previous one. And, conversely, traders watch to open a buy position when the oscillator forms to lows below the zero line with the last one not as low as the previous one.
The third way is to account crossing the zero line. When the oscillator crosses it from up to down, it is time to open a sell position and when it crosses from down to up, it is time to open a buy position.
I have compiled a list detailing a set of High Profits Forex Awesome Oscillator Trend Magic Trading System golden rules that I think you should stick to when trading. This strategy is one of the most profitable because: it is suitablefor any time frame, The risk reward ratio is high, It helps to reduce your risk exposure, It is very easy to follow.
- Allow the Blue Coloured MA to Cross either above the Yellow or Green lines
- Awesome Oscillator crossing the zero line. When the oscillator crosses it from down to up.
- Allow the Blue Coloured MA to Cross either below the Yellow or Green lines
- Awesome Oscillator crossing the zero line. When the oscillator crosses it from up to down.
The price movements on different pairs can vary from 20 to 500 pips, that is why we do not recommend using fixed Take Profit as it may reduce your gains. Still, if you are an experienced trader you can take your own decision about using fixed Take Profit on certain pairs. The same idea is applied for the fixed Stop Loss using.