A momentum indicator developed by Bill Williams that calculates the difference between a 5-period and 34-period simple moving average of bar midpoints. It helps identify market momentum and potential reversals through histogram crossovers and divergences. The Awesome Oscillator is displayed as a histogram that turns green when momentum is increasing and red when it is decreasing.
Example
“The Awesome Oscillator flipped from red to green above the zero line, confirming a bullish momentum shift on the daily timeframe.”