More technical indicators – and the Awesome Oscillator is another variant on the simple moving average theme, not unlike MACD.

The Awesome Oscillator is 34-period simple moving average, (using smoothed values, ie midpoints of the bars (H+L)/2), subtracted from the 5-period simple moving average – and as per usual plotted as a histogram, green color bars higher than preceding, red color bars lower than preceding. Here’s an example showing a downtrend followed by reversal – the signal to sell is good, with it’s zero line crossing

Signals to buy
Saucer = direction changes from the down to up with the second red column lower than the first and the third column higher than the second and colored green.Valid signal only generated when the bar chart is above the zero line.
Zero cross, or nought line crossing = AO goes from negative to positive.
Two tops or two pikes = signal is generated only when values are negative – a top pointing down is followed by another higher (ie closer to zero). If the bar chart crosses the zero line in the area between the tops, not a signal to buy. If an additional, higher, top forms and still negative, an additional signal to buy.

Sell signals
Awesome Oscillator signals to sell are identically reversed. ie Saucer signal is below zero. Zero line crossing is on the decrease. The two tops signal is higher than zero.

Personally, I’ve never been convinced by the Awesome Oscillator – it’s slightly less than that – and doesn’t seem to bring a whole lot to the party that a reasonably skilled interpretation of the good old MACD doesn’t, with a less doctrinaire approach.