We want to introduce you to the new Awesome Oscillator strategy. The strategies are often based on a few indicators. To apply a strategy successfully, a trader ought to get familiar with the indicators that are used in a particular strategy. Then, he can decide whether it is a method well suited for him or maybe, he shall search further. So let's talk about one of the strategies that combine two indicators, the SMA and Awesome Oscillator.
- 1 How to prepare a chart for trading Awesome Oscillator strategy
- 2 How the strategy that combines the SMA and the Awesome Oscillator works
- 3 Summary
How to prepare a chart for trading Awesome Oscillator strategy
The very first thing you have to do is to log into your IQ Option account. Then, pick the financial instrument you intend to trade this time. You will also have to set the chart. My recommendation is the Japanese candlesticks chart as most of the strategies are clearly visible on it. The candles period should be adjusted to 1 minute.
The next step is to add indicators used in this particular strategy to your IQ Option chart. To do this, click on the indicators icon and select the Moving Average. Make a necessary change that is set the period for 100 and type SMA (Simple Moving Average). The colour and thickness settings can be changed as well. Choose the one most transparent to you.
Now, you repeat the procedure for an Awesome Oscillator. You do not have to introduce any changes here as we will use default settings.
Once, both indicators are added to your chart, click the indicators icon again. Under the tab “Added” you will see the tools you are currently using. The IQ Option platform gives you the opportunity to save the template so you can use it in the future with one click only. Provide a name for your new template, then just click the “Save” button and it will be available under the “Templates” tab.
How the strategy that combines the SMA and the Awesome Oscillator works
Which indicator works best with Awesome Oscillator?
Linking indicators is an art of sorts. Of course, many people randomly throw a few indicators on a chart and try to do something in the market based on them. That is not the way to go. You can get a lot of contradictory signals this way. You can also get many of the same signals if the added indicators are similar in nature. Our strategy today is based on the Awesome Oscillator. Most oscillators, on the other hand, work well with moving averages. This is why we have included a Simple Moving Average in our Awesome Oscillator strategy. It is difficult for me to judge if this is the best combination but it is certainly good.
Your chart should look similar to the one below. There is the SMA moving along with the price bars and the Awesome Oscillator window displayed below. Your job is to watch the SMA first and wait for a moment where it goes through the price bar. After this happened, you check with the Awesome Oscillator and if its bar is in the much-needed colour, you enter the trade.
Opening a long trade with the Awesome Oscillator strategy on IQ Option
You are waiting for the uptrend to develop. Then, you are waiting for the SMA to cut through the price bar. Look at the AO histogram. If it is showing a green bar, you have got a confirmation for your trade. Open a long position that lasts 5 minutes.
Opening a short trade with the Awesome Oscillator strategy on IQ Option
Analogically, you are waiting for the downtrend now. Once it has begun, you should follow the SMA line. Wait for the moment when it crosses the price bar. Then, check with the AO histogram. The colour of the bar should be red. Now, you can open a short transaction. With 1-minute as a chart time frame, your option should last 5 minutes.
The combination of the SMA and the Awesome Oscillator is quite easy to use. Especially, with the option to save your favourite templates. It just makes your trading smoother. All you need to do is click on the strategy name you have saved before, and all the indicators needed will be added to the chart. Then, you will have to show some patience. Patience is very important in the trading business. It is not wise to rush into the trade. You must always wait for confirmation from both, the SMA and the Awesome Oscillator. This increases your chances of success.
It is also recommended that you give yourself some time to practice new strategies you have learned. The IQ Option practice account is an excellent place designed for this purpose. After you got hold of using the Awesome Oscillator strategy, you can switch to the live account and start to make profits.
We wish you success!
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