AO Divergence Indicator, Uncover Hidden Market Reversals

Description

An improved version of the classic Awesome Oscillator is the AO Divergence indicator, often known as the Awesome Oscillator Divergence indicator.

Subtracting the two Simple Moving Averages (SMA) yields the AO Divergence indicator. We can identify reversal points on the chart and determine the movement’s strength and direction by examining the convergence and divergence of the slow and fast SMAs.

Below the price chart, in a separate window, this indication is displayed as a colored bar histogram. An upward trend is indicated by green bars, and a downward trend is indicated by red bars.

Divergences are also depicted on the chart by the indicator as blue lines. A trend’s inception and end are shown by the divergences. We get BUY and SELL signals from the indicator pinpoint’s arrows.

Signals for AO Divergence Indicator BUY/SELL

The indicator’s BUY and SELL signals are displayed in the GBP/USD chart H4 above.

A sell signal is displayed if the AO Divergence indicator shows a positive divergence with a downward arrow. In contrast, the indicator displays a bullish divergence and an upward arrow for the purchase indication.

This indicator initiates an upswing when its histogram is bigger than zero, indicating bullish momentum. The bars start to drop and turn red after another peak. If the histogram reverses upward and does not fall below zero, a green bar appears.

On the other hand, the indicator’s histogram drops below zero and begins to descend when there is negative momentum. The bars start to rise and turn green after another low. If the histogram reverses downward and does not reach above 0, a red bar appears.

The BUY and SELL signals are also depicted by the zero line. The histogram signals a purchase if it crosses level 0 from below. On the other hand, it is time to sell if the histogram passes level 0 from above.

In what ways does the AO Divergence indicator help?

The indicator uses the zero line, histogram, and divergences to display several BUY and SELL signals. As a result, it provides you with precise entry and exit points.

Is it free to download the AO Divergence indicator?

Yes, you can download the AO Divergence indicator for free.

Conclusion

To provide precise entry and exit locations, the AO Divergence indicator presents the histogram with bullish and bearish divergences. Anyone can use the indicator in their trading strategies because it is free to download.