This benchmark shows a real-time overview of the technical analysis for the selected timeframe. Summary Gold Spot/USD is based on the most popular technical indicators such as moving averages, oscillators and pivots. We use the above mentioned instruments at GOLD-Signals.net to produce Technical Analysis with a high success rate.
Today we are describing or explaining the Oscillator - AWESOME OSCILLATOR (AO)
The Awesome Oscillator (AO) functions as a momentum indicator in the market. It derives its value by calculating the variance between a 34-period and a 5-period Simple Moving Average, where these moving averages are computed based on the midpoints of each bar, not the closing prices. Typically, the Awesome Oscillator is employed to confirm ongoing trends or anticipate potential reversals.
As an oscillator, the Awesome Oscillator is structured to produce values oscillating above and below a Zero Line. These values are graphically represented in the form of a histogram composed of red and green bars. A green bar indicates that its value surpasses the preceding bar, while a red bar signifies a value lower than the previous one. When AO values rise above the Zero Line, it suggests a short-term uptrend compared to the long-term trend. Conversely, when AO values dip below the Zero Line, it implies a short-term downtrend compared to the longer-term trend. This information can be leveraged to generate various signals.