GlossaryIntermediate
Awesome Oscillator
The difference between a 5-period and 34-period simple moving average of an asset's midpoint price, used to gauge market momentum.
The Awesome Oscillator, developed by Bill Williams, is calculated as the difference between a 5-period and a 34-period simple moving average, both calculated from the midpoint price (the average of each period's high and low) rather than the closing price most other indicators use.
Using the midpoint price rather than the close is a deliberate design choice intended to capture a fuller picture of each period's actual trading range. See Kaavon's dedicated Awesome Oscillator article for the full calculation and common signal patterns.
Examples
- The Awesome Oscillator crossing above zero means its faster 5-period average has moved above its slower 34-period average.
- The Awesome Oscillator's use of midpoint price, rather than closing price, is a key difference from most other moving-average-based momentum tools.