# 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://1574671354-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQAglKSOJnxCrGxFyuplO%2Fuploads%2Fgit-blob-de74191003853cce1dd65c0d2b3a1afe361f365b%2Fimage%20\(10\).png?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://1574671354-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQAglKSOJnxCrGxFyuplO%2Fuploads%2Fgit-blob-104465f891f862ee0879f098c9490367d51ccdb9%2Fimage%20\(22\).png?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.
