AO (Awesome Oscillator)

The Awesome Oscillator compares a 5-period SMA to a 34-period SMA of the midpoint price (HL/2). It helps identify momentum shifts and trend strength.

Declaration

function init(ctx) {
  ctx.indicator('ao', 'AO', { fastPeriod: 5, slowPeriod: 34 });
}

Options

Output

Returns a single number[] series oscillating around zero.

Accessing Values

function onBar(ctx, i) {
  const ao = ctx.ind.ao[i];
}

Use Cases

Zero-Line Cross

function onBar(ctx, i) {
  const ao = ctx.ind.ao[i];
  const prevAo = ctx.ind.ao[i - 1];
  
  if (prevAo <= 0 && ao > 0) {
    ctx.order.market('ASSET', 1, { signal: 'buy', reason: 'ao_bullish' });
  }
  if (prevAo >= 0 && ao < 0) {
    ctx.order.close('ASSET', { signal: 'sell', reason: 'ao_bearish' });
  }
}

Saucer Setup

function onBar(ctx, i) {
  const ao1 = ctx.ind.ao[i - 2];
  const ao2 = ctx.ind.ao[i - 1];
  const ao3 = ctx.ind.ao[i];
  
  // Bullish saucer: AO > 0, dips then rises
  if (ao1 > ao2 && ao2 < ao3 && ao3 > 0) {
    ctx.order.market('ASSET', 1, { signal: 'buy', reason: 'ao_saucer' });
  }
}

Calculation

$$AO = SMA(HL/2, fastPeriod) - SMA(HL/2, slowPeriod)$$

Where $HL/2 = (High + Low) / 2$

Related

• MACD - Similar dual-MA oscillator concept
• ROC - Rate of change momentum
• RSI - Bounded momentum oscillator