Awesome Oscillator Trend Bar

TradingView Scripts

How do you identify whether a stock/index is in an uptrend or a downtrend? I use a modified Awesome Oscillator for this. An “awesome" thread with a free Tradingview script in the end!

The Bill Williams' Awesome Oscillator calculates the difference between 34-period & 5-period SMAs.

⦿ If the Awesome Oscillator is above the zero line, it is considered bullish.

⦿ If the Awesome Oscillator is below the zero line, it is considered bearish.

For our purpose, we’ll use 34 & 13 period EMAs.

⦿ If 13EMA is greater than 34EMA, then awesome oscillator is positive (above zero line), so trend is bullish.

⦿ If 13EMA is lesser than 34EMA, then awesome oscillator is negative (below zero line), so trend is bearish.

We use multi-timeframes, weekly (W) & daily (D), for trend determination.

⦿ AO positive on both D & W -> Uptrend

⦿ AO negative on D but positive on W -> Uptrend under pressure

⦿ AO negative on both D & W -> Downtrend

⦿ AO negative on W but positive on D -> Rally Attempt

Here is the source code for a Tradingview script for this.

Please note that the AO trend bar will work only on the weekly timeframe. Hope this makes trend identification easier for you!