> For the complete documentation index, see [llms.txt](https://docs.thirddimension.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thirddimension.exchange/analytics-panels/chart/technical-indicators/oscillators/awesome-oscillator.md).

# Awesome Oscillator

## Description <a href="#description" id="description"></a>

Awesome oscillator is an another kind of Moving average convergence/divergence indicator just with predefined input parameters. AO calculates the difference between 34 period SMA and 5 period SMA smoothed with 5 period moving average.

![](/files/t2MIlGZcflXP998KpNez)

## Formula <a href="#formula" id="formula"></a>

5 period SMA - 34 period SMA

## Most useful cases <a href="#most-useful-cases" id="most-useful-cases"></a>

* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) of the price not confirmed with a new high/low of AO. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.

![](/files/KUMrktgRQ8OeOq7mw6Wp)

* **Crossing zero line** - this is a trend reversing signal and it can be very useful in case of determining a correction of existing trend, beginning of a new trend wave or starting a new trend.