Awesome Oscillator in EasyLanguage — TradeStation & MultiCharts

The Awesome Oscillator is a short, satisfying EasyLanguage study — two Average calls on the median price and a colour rule. See the explainer for the concept.

What you’ll need

• TradeStation or MultiCharts
• The EasyLanguage / PowerLanguage Editor, new Indicator

The source

{ AlgoGen Awesome Oscillator — TradeStation / MultiCharts }
inputs:
    FastLen( 5 ),
    SlowLen( 34 );

variables:
    Median( 0 ),
    AO( 0 );

Median = ( High + Low ) / 2;
AO = Average( Median, FastLen ) - Average( Median, SlowLen );

Plot1( AO, "AO" );
Plot2( 0, "Zero" );

{ Momentum colouring: green if AO rose vs the prior bar, else red }
if AO >= AO[1] then
    SetPlotColor( 1, Green )
else
    SetPlotColor( 1, Red );

Median = (High + Low) / 2 is the midpoint; Average(Median, 5) - Average(Median, 34) is the AO. Setting the histogram plot to green/red by comparing AO to AO[1] reproduces the momentum colouring from the output chart. (Set Plot1’s style to Histogram in the study properties.)

Signals

{ Zero-line cross entries }
if AO crosses over 0 then Buy next bar at market;
if AO crosses under 0 then SellShort next bar at market;

Run the Strategy Performance Report (in a Strategy version) to judge whether AO zero-crosses add anything, ideally with a trend filter.

Bonus: the Accelerator Oscillator

Williams’ companion AC is the AO minus a 5-bar average of itself:

variables: AC( 0 );
AC = AO - Average( AO, 5 );
Plot3( AC, "AC" );
if AC >= AC[1] then SetPlotColor( 3, Green ) else SetPlotColor( 3, Red );

Add it to the study to see momentum acceleration — Williams’ earliest signal. Set Plot3’s style to Histogram in the study properties.

Gotchas

• Median price. (High + Low) / 2, not close — that’s the defining AO choice.
• Average, not XAverage. The AO uses simple moving averages; the exponential XAverage would change the line.
• Colour by momentum. Compare AO to AO[1] for the bar colour, not to zero.

Same indicator elsewhere: Python, MQL5, Pine Script, NinjaScript. Then backtest it in AlgoGen.

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This post is educational, not financial advice. Indicators describe the past; they don’t predict the future. Backtest anything before you risk real money on it.