Awesome

The Awesome Oscillator is a client side VTL Script used in VertexFX to measure market momentum. AO calculates the difference of a 34 Period and 5 Period Simple Moving Averages. The Simple Moving Averages that are used are not calculated using closing price but rather each bar’s midpoints. AO is generally used to affirm trends or to anticipate possible reversals.

The most straightforward, basic signal generated by the Awesome Indicator is the Zero Line Cross. This is simply when the AO value crosses above or below the Zero Line. This indicates a change in momentum.

Zero Line Cross –

When AO crosses above the Zero Line, short term momentum is now rising faster than the long term momentum.This can present a bullish buying opportunity.
When AO crosses below the Zero Line, short term momentum is now falling faster than the long term momentum. This can present a bearish selling opportunity.

Twin Peaks Setup –

Twin Peaks is a method which considers the differences between two peaks on the same side of the Zero Line.
A Bullish Twin Peaks setup occurs when there are two peaks below the Zero Line. The second peak is higher than the first peak and followed by a green bar. Also very importantly, the trough between the two peaks, must remain below the Zero Line the entire time.
A Bearish Twin Peaks setup occurs when there are two beaks above the Zero Line. The second peak is lower than the first peak and followed by a red bar. The trough between both peaks, must remain above the Zero Line for the duration of the setup.

Saucer Setups

A Saucer AO Setup looks for more rapid changes in momentum. The Saucer method looks for changes in three consecutive bars, all on the same side of the Zero Line.
A Bullish Saucer set up occurs when the AO is above the Zero Line. It entails two consecutive red bars (with the second bar being lower than the first bar) being followed by a green Bar.
A Bearish Saucer set up occurs when the AO is below the Zero Line. It entails two consecutive green bars (with the second bar being higher than the first bar) being followed by a red bar.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.