OS AO (P-unity MACD)

This is both the Awesome Oscillator (AO) as described in New Trading Dimensions ( NTD , book by Bill Williams ), and the Profitunity MACD described in the first edition of Trading Chaos.

The calculation for both is the same. In this case I added the 5 day SMA which is the blue line. The difference between the blue line and the AO is the AC which is also described in NTD and is usually plotted in a different indicator ( AC ).

This is the base for the following signals:

Zone Bar
2nd Wise Man

The signals are triggered and shown on the main chart screen through the use of OS Alligator . This indicator (AO) provides further insight in analyzing those signals by reading the AO, its current position and evolution directly.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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