The Awesome Oscillator is an indicator used to measure market momentum. The Simple Moving Averages that are used are not calculated using closing price but rather each bar's midpoints. AO is generally used to affirm trends or to anticipate possible reversals. Because of its nature as an oscillator , The Awesome Oscillator is designed to have values that fluctuate above and below a Zero Line.
How to trade with Awesome Oscillator indicator? Analysis and strategy
Double top and bottom patterns are chart patterns that occur when the underlying investment moves in a similar pattern to the letter "W" double bottom or "M" double top. Double top and bottom analysis is used in technical analysis to explain movements in a security or other investment, and can be used as part of a trading strategy to exploit recurring patterns. Double top and bottom patterns typically evolve over a longer period of time, and do not always present an ideal visual of a pattern because the shifts in prices don't necessarily resemble a clear "M" or "W". When reviewing the chart pattern, it is important for investors to note that the peaks and troughs do not have to reach the same points in order for the "M" or "W" pattern to appear. Double top and bottom patterns are formed from consecutive rounding tops and bottoms.
Three peaks and domed house and its mirror, domed house and three peaks, are patterns discovered by George Lindsay certainly before its publication in in Encyclopedia of Stock Market Techniques. I searched for this pattern extensively for inclusion in the first edition of my book Encyclopedia of Chart Patterns the second edition is pictured on the right , but I couldn't find enough samples, so I never included it. Lindsay says it appears in the Dow Jones industrial average. I think you will find that the more complicated the chart pattern, the less often they appear in a stock, or in this case -- the Dow Jones industrial average -- and the less often they work as expected.
Double top and double bottom are reversal chart patterns observed in the technical analysis of financial trading markets of stocks , commodities , currencies , and other assets. The double top is a frequent price formation at the end of a bull market. It appears as two consecutive peaks of approximately the same price on a price-versus-time chart of a market. The two peaks are separated by a minimum in price, a valley.