Bill Williams designed the Awesome Oscillator (AO) in the late 1990s as part of his “trading chaos” framework. It’s effectively a momentum histogram — the difference between a 5-period and 34-period simple moving average of the median price ((High+Low)/2) — but the way it visualises that difference is what makes it special. Green bars mean momentum is increasing; red bars mean it’s decreasing. You read trend strength at a glance, no math required.
After 16 years of running every momentum oscillator MT4 ships with, AO is still the one I keep on my Bill Williams chart template alongside the Alligator. It catches the saucer-pattern continuation entries that pure trend tools miss.
What is the Awesome Oscillator?
The Awesome Oscillator measures the difference between fast (5-period) and slow (34-period) simple moving averages applied to the median price. The result is plotted as a histogram below the chart, oscillating around a zero line.
Williams’s idea: the 5-period SMA represents recent momentum; the 34-period represents the broader trend. When recent momentum exceeds broader trend, AO is positive. When recent momentum lags, AO is negative. The bars are coloured based on whether the current value is higher or lower than the previous bar — that’s the green/red dynamic.
This makes AO different from the indicators it resembles. MACD compares EMAs and adds a signal line. AO compares SMAs and adds nothing — just the histogram and zero line. Cleaner, easier to read, less noise.
How Awesome Oscillator Works on MT4
On MT4, AO plots in a sub-window with green bars (current value above previous), red bars (current value below previous), and a horizontal zero line.
Three signals matter on AO:
The first is the zero-line cross. AO crossing above zero means the 5-SMA crossed above the 34-SMA — a basic trend-flip signal. Below zero, the inverse. Reliable as a trend filter, slow as an entry trigger.
The second is the saucer pattern. Two consecutive same-colour bars after a colour change. For example: AO is below zero, prints a red bar, prints another red bar (deeper), then prints a smaller red bar (the first sign of weakening downward momentum), then a green bar (saucer complete — long entry). This is the highest-probability AO signal in my testing.
The third is twin peaks divergence. AO makes two peaks below zero with the second peak higher than the first while price makes lower lows — bullish twin peaks. Inverse for bearish. This is AO’s version of standard oscillator divergence and works on H4 and D1 reliably.
Key Features
- Built into MT4 – Insert > Indicators > Bill Williams > Awesome Oscillator
- Histogram visualisation with green/red bars showing momentum acceleration
- Default settings (5/34 SMA on median price) work universally — no customisation usually needed
- Non-repainting once candles close
- Three distinct signals: zero-line cross, saucer pattern, twin peaks divergence
- Lightweight, fits naturally on charts alongside Alligator and Fractals
Best Settings for Awesome Oscillator
Williams’s original settings (5-period fast, 34-period slow, median price) are what 95% of traders run unchanged. AO is one of the few indicators where I genuinely don’t recommend tweaking the defaults — they were chosen specifically to align with Williams’s broader trading framework.
| Parameter | Default (recommended) | Faster (scalping experiment) |
|---|---|---|
| Fast SMA Period | 5 | 3 |
| Slow SMA Period | 34 | 21 |
| Applied Price | Median Price ((H+L)/2) | Median Price |
Recommended starting point: Default 5/34 settings on H1 and H4. The histogram works on any timeframe but produces too much noise on M5 and below.
Pros and Cons
| Pros | Cons |
|---|---|
| Histogram visualisation makes momentum changes immediately readable | No fixed OB/OS levels — relative magnitude only |
| The saucer pattern is one of the most reliable continuation signals on MT4 | Zero-line crosses can lag noticeably in fast-moving markets |
| Default settings work universally with no calibration needed | Best paired with Bill Williams’s other tools (Alligator, Fractals) — standalone use is limited |
| Built into MT4, non-repainting, low computational overhead | Twin peaks divergence requires patience — fires only a few times per month on H4 |
How to Install Awesome Oscillator on MT4
The standard AO is built into MT4. For the enhanced version see install custom indicators on MT4.
Step 1: Open MT4 and select your chart.
Step 2: Click Insert > Indicators > Bill Williams > Awesome Oscillator.
Step 3: Default settings are fine. Pick contrasting green/red colours for the bars in the Colours tab.
Step 4: Click OK. Save as a template for reuse.
Trading Strategy: AO Saucer Pattern
The saucer is Williams’s signature AO entry. Works best on H1 and H4 EURUSD, GBPUSD, gold (XAUUSD).
Setup: AO with default settings. Identify trend direction first — typically with the Alligator or a 200 SMA on the same chart.
Bullish Saucer (Buy Signal):
1. AO is above the zero line (uptrend confirmed)
2. AO prints two consecutive red bars (correction phase)
3. AO prints a green bar that’s larger than the previous red bar
4. Enter long on the close of the green bar
Bearish Saucer (Sell Signal):
1. AO is below the zero line (downtrend confirmed)
2. AO prints two consecutive green bars (correction phase)
3. AO prints a red bar that’s larger than the previous green bar
4. Enter short on the close of the red bar
Stop Loss: Beyond the recent swing extreme that formed during the correction.
Take Profit: 1:2 R:R or trail until AO crosses zero against your position.
The saucer requires AO to already be on the right side of zero. Don’t take counter-trend saucers — they win individually but lose on average. The zero-line context is what filters out most of the noise.
Awesome Oscillator vs MACD
| Feature | Awesome Oscillator | MACD |
|---|---|---|
| Calculation | 5/34 SMA on median price | 12/26 EMA on close, with 9-period signal line |
| Visualisation | Histogram with green/red bars | Two lines plus histogram |
| Primary signal | Saucer pattern + zero cross | Signal-line cross + histogram |
| Best for | Trend continuation entries | Trend confirmation + reversal warnings |
| Lag | Slower zero cross, faster saucer | Faster signal-line cross |
Verdict: AO if you trade Bill Williams’s chaos framework or want clean continuation entries. MACD if you want a more general-purpose trend-momentum hybrid with crossover signals.
Frequently Asked Questions
Is the Awesome Oscillator free?
Yes. Built into MT4 and the enhanced version below is also free.
Does the Awesome Oscillator repaint?
No. AO bars lock in once the candle closes. The current bar can change colour while the candle is forming, but historical bars are fixed.
What is the best Awesome Oscillator setting?
Default 5-period fast SMA, 34-period slow SMA, median price. Williams chose these specifically to align with the rest of his framework. I don’t recommend tweaking them.
Awesome Oscillator vs Accelerator Oscillator?
Both are Bill Williams creations. AO measures momentum; AC (Accelerator) measures the rate of change of momentum. AC is faster but noisier. Use AO as the primary momentum read; AC as an early-warning supplement.
Can I use AO on MT5?
Yes. Built into MT5 with identical behaviour.
Download Enhanced Awesome Oscillator for MT4 – Free
The standard AO works fine but the enhanced version adds:
- Multi-timeframe display – H4 and D1 AO on your H1 chart
- Saucer-pattern alerts – popup, email, push when a complete saucer forms
- Zero-line cross alerts – notification when AO flips sign
- Twin peaks divergence – automatic divergence detection on the histogram
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 14 KB
Version: 2.3
Last updated: April 2026
Download the Awesome Oscillator – Free Instant Access
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- The non-repainting Awesome Oscillator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- The exact saucer-pattern entry rules I use in live trading
- Bill Williams’s full Awesome Oscillator framework explained
- Weekly trading insights from a developer with 16+ years of market experience
Download the Awesome Oscillator Indicator – Free Instant Access
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- The non-repainting Awesome Oscillator Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.4/5
| Category | Rating |
|---|---|
| Accuracy | 4.3/5 |
| Ease of Use | 4.7/5 |
| Features | 4.2/5 |
| Value | 4.5/5 |
Related Indicators
- Alligator Indicator MT4 – Bill Williams’s trend identification tool, pairs perfectly with AO
- Accelerator Oscillator MT4 – The rate-of-change cousin of AO, faster signals
- MACD Indicator MT4 – The other dominant momentum histogram
- Best Oscillator Indicators for MT4 – The full ranked list
- RSI Indicator MT4
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