Williams Awesome Oscillator..

mujoh · Dec 5, 2006

Quote from Mo06:

Here is a detailed description of the AO:

"Awesome Oscillator
Awesome Oscillator Technical Indicator (AO) is a 34-period simple moving average, plotted through the middle points of the bars (H+L)/2, which is subtracted from the 5-period simple moving average, built across the central points of the bars (H+L)/2. It shows us quite clearly whatâs happening to the market driving force at the present moment.

MEDIAN PRICE = (HIGH+LOW)/2
AO = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34)
More...

Sounds like a MACD with the Median Price as input. Or did I miss something?

Mo06 · Dec 5, 2006

"Sounds like a MACD with the Median Price as input. Or did I miss something?"

Yes it's basically the same thing using 5 & 34 periods. Line changes from green to red on fall & vice versa. Maybe some chart packages do this on MACD too ?

chart showing MACD & AO...

kiwi_trader · Dec 5, 2006

Here's the C code for his averages etc for Sierra Chart. Note the slight variations on standard displaced mas, macds etc (creating a certain proprietary nature)

Code:

/***********************************************************************/
extern "C" __declspec( dllexport ) void BWMA(struct s_sg &sg)
{
	sg.GraphName="BWMA";
	sg.Subgraph[0].Name="MA";

	sg.Input[2].Name="3 MA Length";
	sg.Input[3].Name="Offset";
	sg.FreeDLL=0; 
    if(sg.SetDefaults) {return;}	
	if(sg.ArraySize<100) return;

	int    i,pos,term=30;
	if(sg.Input[2].FloatValue==0) sg.Input[2].FloatValue=34;

	double sum1=0;
	double avg1=0;

	sg.DataStartIndex=50;

	for (pos=50; pos < sg.ArraySize; pos++)
	{
				sum1 = sum1 + sg.BaseDataIn[3][pos];
				if(pos>=50+(int)sg.Input[2].FloatValue) {sum1 = sum1 - avg1;};
				avg1 = sum1 / sg.Input[2].FloatValue;
				
                int pos2=pos+(int)sg.Input[3].FloatValue;
				if((pos2<sg.ArraySize) && (pos2>30)) sg.Subgraph[0].Data[pos2] = avg1; 
		}


};


/***********************************************************************/
extern "C" __declspec( dllexport ) void AC(struct s_sg &sg)

{
	sg.GraphName="AC";
	sg.Subgraph[0].Name="Up";
	sg.Subgraph[1].Name="Dn";
	sg.Subgraph[2].Name="Flat";
	sg.Subgraph[3].Name="Do Not Draw";


	sg.Input[2].Name="3 Long MA Length";
	sg.Input[3].Name="4 Short MA Length";
	sg.Input[4].Name="5 Signal MA Length";
	sg.Input[5].Name="6 BWSmoothed (0), Exponential (1) or Simple (2) Moving Averages";
	sg.FreeDLL=0; 
    if(sg.SetDefaults) {return;}	
	if(sg.ArraySize<100) return;

	int    j,pos,term=30;

	if(sg.Input[2].FloatValue==0) sg.Input[2].FloatValue=34;
	if(sg.Input[3].FloatValue==0) sg.Input[3].FloatValue=5;
	if(sg.Input[4].FloatValue==0) sg.Input[4].FloatValue=5;

	double sum1=0; double sum2=0; double sum3=0; double sum4=0;
	double avg1=0; double avg2=0; double avg3=0; double avg4=0;
	double cfactor1=2/(sg.Input[2].FloatValue+1); double cinvfactor1=1-cfactor1;
	double cfactor2=2/(sg.Input[3].FloatValue+1); double cinvfactor2=1-cfactor2;
	double cfactor4=2/(sg.Input[4].FloatValue+1); double cinvfactor4=1-cfactor4;

	sg.DataStartIndex=50;

	for (pos=50; pos < sg.ArraySize; pos++)
	{


			if(sg.Input[5].FloatValue==0)
			{

				sum1 = sum1 + sg.BaseDataIn[3][pos];
				if(pos>=50+sg.Input[2].FloatValue) {sum1 = sum1 - avg1;};
				avg1 = sum1 / sg.Input[2].FloatValue;

				sum2 = sum2 + sg.BaseDataIn[3][pos];
				if(pos>=50+sg.Input[3].FloatValue) {sum2 = sum2 - avg2;};
				avg2 = sum2 / sg.Input[3].FloatValue;

				avg3 = avg2 - avg1;

				sg.Subgraph[5].Data[pos] = avg3;
				sum4 = sum4 + avg3;
				avg4 = sum4 / sg.Input[4].FloatValue;
				j=pos-(int)sg.Input[4].FloatValue+1;
				if(pos>50+sg.Input[4].FloatValue-2) {sum4 = sum4 - sg.Subgraph[5].Data[j];};


			} else if(sg.Input[5].FloatValue==1)
			{
				avg1 = avg1*cinvfactor1+sg.BaseDataIn[3][pos]*cfactor1;
				avg2 = avg2*cinvfactor2+sg.BaseDataIn[3][pos]*cfactor2;
				avg3 = avg2 - avg1;
				sg.Subgraph[5].Data[pos] = avg3;
				avg4 = avg4*cinvfactor4+avg3*cfactor4;
			} else
			{
				sum1 = sum1 + sg.BaseDataIn[3][pos];
				avg1 = sum1 / sg.Input[2].FloatValue;
				j=pos-(int)sg.Input[2].FloatValue+1;
				if(pos>50+sg.Input[2].FloatValue-2) {sum1 = sum1 - sg.BaseDataIn[3][j];};

				sum2 = sum2 + sg.BaseDataIn[3][pos];
				avg2 = sum2 / sg.Input[3].FloatValue;
				j=pos-(int)sg.Input[3].FloatValue+1;
				if(pos>50+sg.Input[3].FloatValue-2) {sum2 = sum2 - sg.BaseDataIn[3][j];};

				avg3 = avg2 - avg1;

				sg.Subgraph[5].Data[pos] = avg3;
				sum4 = sum4 + avg3;
				avg4 = sum4 / sg.Input[4].FloatValue;
				j=pos-(int)sg.Input[4].FloatValue+1;
				if(pos>50+sg.Input[4].FloatValue-2) {sum4 = sum4 - sg.Subgraph[5].Data[j];};
			}


			sg.Subgraph[3].Data[pos] = avg3-avg4;

			if(sg.Subgraph[3].Data[pos]>sg.Subgraph[3].Data[pos-1])
				{sg.Subgraph[0].Data[pos] = sg.Subgraph[3].Data[pos]; sg.Subgraph[1].Data[pos] = 0; sg.Subgraph[2].Data[pos] = 0;} else
			if(sg.Subgraph[3].Data[pos] < sg.Subgraph[3].Data[pos-1])
				{sg.Subgraph[0].Data[pos] = 0; sg.Subgraph[1].Data[pos] = sg.Subgraph[3].Data[pos]; sg.Subgraph[2].Data[pos] = 0;} else
			{sg.Subgraph[0].Data[pos] = 0; sg.Subgraph[1].Data[pos] = 0; sg.Subgraph[2].Data[pos] = sg.Subgraph[3].Data[pos];};;

		}


};


/***********************************************************************/
extern "C" __declspec( dllexport ) void AO(struct s_sg &sg)

{
	sg.GraphName="AO";
	sg.Subgraph[0].Name="Up";
	sg.Subgraph[1].Name="Dn";
	sg.Subgraph[2].Name="Flat";
	sg.Subgraph[3].Name="All";

	sg.Input[2].Name="3 Long MA Length";
	sg.Input[3].Name="4 Short MA Length";
	sg.Input[4].Name="5 Signal MA Length";
	sg.Input[5].Name="6 BWSmoothed (0), Exponential (1) or Simple (2) Moving Averages";
	sg.FreeDLL=0; 
    if(sg.SetDefaults) {return;}

	if(sg.ArraySize<100) return;
	// if(sg.DateIn[sg.ArraySize-1]>38350) return;

	int    j,pos,term=30;

	if(sg.Input[2].FloatValue==0) sg.Input[2].FloatValue=34;
	if(sg.Input[3].FloatValue==0) sg.Input[3].FloatValue=5;
	if(sg.Input[4].FloatValue==0) sg.Input[4].FloatValue=5;

	double sum1=0; double sum2=0; double sum3=0; double sum4=0;
	double avg1=0; double avg2=0; double avg3=0; double avg4=0;
	double cfactor1=2/(sg.Input[2].FloatValue+1); double cinvfactor1=1-cfactor1;
	double cfactor2=2/(sg.Input[3].FloatValue+1); double cinvfactor2=1-cfactor2;
	double cfactor4=2/(sg.Input[4].FloatValue+1); double cinvfactor4=1-cfactor4;

	sg.DataStartIndex=50;

	for (pos=50; pos < sg.ArraySize; pos++)
	{

			if(sg.Input[5].FloatValue==0)
			{

				sum1 = sum1 + sg.BaseDataIn[3][pos];
				if(pos>=50+sg.Input[2].FloatValue) {sum1 = sum1 - avg1;};
				avg1 = sum1 / sg.Input[2].FloatValue;

				sum2 = sum2 + sg.BaseDataIn[3][pos];
				if(pos>=50+sg.Input[3].FloatValue) {sum2 = sum2 - avg2;};
				avg2 = sum2 / sg.Input[3].FloatValue;

				avg3 = avg2 - avg1;

				sg.Subgraph[5].Data[pos] = avg3;
				sum4 = sum4 + avg3;
				avg4 = sum4 / sg.Input[4].FloatValue;
				j=pos-(int)sg.Input[4].FloatValue+1;
				if(pos>50+sg.Input[4].FloatValue-2) {sum4 = sum4 - sg.Subgraph[5].Data[j];};


			} else if(sg.Input[5].FloatValue==1)
			{
				avg1 = avg1*cinvfactor1+sg.BaseDataIn[3][pos]*cfactor1;
				avg2 = avg2*cinvfactor2+sg.BaseDataIn[3][pos]*cfactor2;
				avg3 = avg2 - avg1;
				sg.Subgraph[5].Data[pos] = avg3;
				avg4 = avg4*cinvfactor4+avg3*cfactor4;
			} else
			{
				sum1 = sum1 + sg.BaseDataIn[3][pos];
				avg1 = sum1 / sg.Input[2].FloatValue;
				j=pos-(int)sg.Input[2].FloatValue+1;
				if(pos>50+sg.Input[2].FloatValue-2) {sum1 = sum1 - sg.BaseDataIn[3][j];};

				sum2 = sum2 + sg.BaseDataIn[3][pos];
				avg2 = sum2 / sg.Input[3].FloatValue;
				j=pos-(int)sg.Input[3].FloatValue+1;
				if(pos>50+sg.Input[3].FloatValue-2) {sum2 = sum2 - sg.BaseDataIn[3][j];};

				avg3 = avg2 - avg1;

				sg.Subgraph[5].Data[pos] = avg3;
				sum4 = sum4 + avg3;
				avg4 = sum4 / sg.Input[4].FloatValue;
				j=pos-(int)sg.Input[4].FloatValue+1;
				if(pos>50+sg.Input[4].FloatValue-2) {sum4 = sum4 - sg.Subgraph[5].Data[j];};
			}


			sg.Subgraph[4].Data[pos] = avg3-avg4;

			sg.Subgraph[3].Data[pos] = sg.Subgraph[5].Data[pos];
			if(sg.Subgraph[5].Data[pos]>sg.Subgraph[5].Data[pos-1])
				{sg.Subgraph[0].Data[pos] = sg.Subgraph[5].Data[pos]; sg.Subgraph[1].Data[pos] = 0; sg.Subgraph[2].Data[pos] = 0;} else
			if(sg.Subgraph[5].Data[pos] < sg.Subgraph[5].Data[pos-1])
				{sg.Subgraph[0].Data[pos] = 0; sg.Subgraph[1].Data[pos] = sg.Subgraph[5].Data[pos]; sg.Subgraph[2].Data[pos] = 0;} else
			{sg.Subgraph[0].Data[pos]=0; sg.Subgraph[1].Data[pos] = 0; sg.Subgraph[2].Data[pos] = sg.Subgraph[5].Data[pos];};;

		}


};

mujoh · Dec 5, 2006

Quote from Mo06:

"Sounds like a MACD with the Median Price as input. Or did I miss something?"

Yes it's basically the same thing using 5 & 34 periods. Line changes from green to red on fall & vice versa. Maybe some chart packages do this on MACD too ?

chart showing MACD & AO...
More...

So I guess Williams next book will include his new Fantastic indicator which is nothing more than a slightly reshaped Stochastic Indicator with Median Price.

As kiwi-trader already said: Just another marketing crap!

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Williams Awesome Oscillator..

mujoh

Mo06

ftse ao 15 min.png

kiwi_trader

mujoh