Technical indicators / IFX_DAO indicator

Formula

Trading use

Used in Meta Trader 4, this oscillator combines two Awesome Oscillator’s indicators which are displayed on the chart as a histogram.

Here are the basic rules of trading according to Double Awesome Oscillator:

• The indicator gives a buy signal when a red histogram of rapid Awesome Oscillator (AO) crosses a green histogram of slow AO from bottom to top
• Traders should sell when a red histogram of rapid AO crosses a green line of slow AO from top to bottom
• Trades should be closed when histograms intercross backwards
• You should refrain from trading when the indicator’s lines are directed sideways. You had better open a trade when you can see an obvious trend has been formed for a certain financial asset
• In case you see that indicator’s lines show mixed movement, you should trade in the direction of a slow AO’s line