Awesome Oscillator and Accelerator Oscillator belong to indicators, i.e. as the name suggests oscillators, whose essence is to measure market momentum and speed.
On their own, both oscillators can provide traders with some interesting insight into the current situation, but in tandem, not only their results, but also their trading "signals" gain in importance and overall relevance.
Strategy entry rules (example)
Entering long positions
- Ao and Ac both get above the zero bound
Entry into short positions
- Both Ao and Ac fall below the zero bound
How to trade with the strategy
The Awesome Oscillator and the Accelerator Oscillator are based on completely different algorithms and therefore their input signals often do not correlate "at all" over time. And it is this fact that can ultimately be very well exploited within today's strategy, whereby each trader can wait for the moment when both indicators move together above/below the zero bound. This then not only constitutes a buy/sell signal, but thanks to just two independent indicators, it is a very strong type of trading signal on which the entire strategy stands and benefits from.
The long-term success rate of today's strategy can range from 45-65%, where the final result can be influenced not only by the chosen instrument, but of course also by the chosen ratio between potential gains and losses.