# Awesome Oscillator

## Description

Owesome oscillator is an another kind of Moving average convergence/divergence indicator just with predefined input parameters. AO calculates the difference beetwen 34 period SMA and 5 period SMA smothed with 5 period mooving average.

![](https://3544171604-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LvquTYs4Kw8odYPu7JS%2F-LvqvlZAGmY-zeltmwwG%2F-LvqvoDbG4ErOhEfT1d4%2Fimage%20\(10\).png?generation=1576100910924598\&alt=media)

## Formula

5 period SMA - 34 period SMA

## Most useful cases

* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) of the price not confirmed with a new high/low of  AO. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.

![](https://3544171604-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LvquTYs4Kw8odYPu7JS%2F-LvqvlZAGmY-zeltmwwG%2F-LvqvoDdhrHzbVIIpgPs%2Fimage%20\(22\).png?generation=1576100908806928\&alt=media)

* **Crossing zero line** - this is a trend reversing signal and it can be very useful in case of determining a correction of existing trend, beginning of a new trend wave or starting a new trend.