Bill Williams Awesome Oscillator Strategy Unveiled

Williams stated in his book, “It is, without doubt, the best momentum indicator available in the stock and commodity markets. It is as simple as it is elegant.” That’s a bold statement. What is in Bill Williams Awesome indicator?

The Bill Williams Awesome oscillator is an indicator that traders use to measure momentum in a market with the aim of detecting potential trend direction or trend reversals. It is basically a 34-bar simple moving average subtracted from a 5-bar simple moving average.

Like all indicators, it is typically used as part of a larger trading system to formulate a strategy. Now, let’s take a look at the indicator. At the end of the article, we make a backtest of Bill Williams Awesome indicator.