AO Signal Candle Indicator
AO Signal Candle indicator is an ideal trend detector based on the awesome oscillator.
Description
The Awesome Oscillator(AO) signal candle is based on the Awesome oscillator. The indicator is one of the best ways to identify the trend direction. It displays bars that change color between green and red depending on the existing trend direction. In addition, it changes the color of the price action candlesticks. Essentially this technical tool shows the market momentum and directions.
How To Use the AO Signal Candle to Trade
Using the indicator is quite straightforward. You simply want to wait for the price action candlestick to change color.
Buy Signal
Buy when the price action changes to green. This is an indication of a bullish market. The candlestick should change from yellow to green.
Sell Signal
Sell when the price action color changes to red. This is a tell-tale sign of a bearish market. The candlestick should change color from yellow to red.
AO Signal Candle Trading Example
The chart shows the price movement for the New Zealand dollar against the US dollar. The price action candles change to green during an uptrend and red during a downtrend. However, price action is littered with yellow bars, which shows indecision, and you should, therefore, wait for a strong trend.
Conclusion
AO signal is one of the most useful indicators in identifying the trend direction. You simply wait for the indicator color to change to red to open a short position and a long position when the candlestick changes color to green.