About the Awesome OC Indicator
The Awesome OC indicator for MT4 provides a refined perspective on market momentum by improving upon the standard Bill Williams calculation.
It utilizes the difference between two moving averages to isolate price velocity from background market noise.
This indicator serves as a momentum oscillator that assists traders in identifying the exact moment a trend loses strength or begins to accelerate in the opposite direction.
Traders benefit from its ability to forecast short-term swings while maintaining alignment with the broader market flow.
It acts as a primary trigger for entries when momentum shifts aggressively beyond the zero threshold, providing a stable foundation for trend-following strategies.
Free Download
Download the “AwesomeOC.mq4” MT4 indicator
Key Features
- Zero line crossover logic provides objective entry and exit points for all pairs.
- Color-coded bars immediately identify whether bullish or bearish pressure is increasing.
- Works effectively as a standalone momentum trigger for fast-paced scalping strategies.
- Adjustable input parameters allow for customization to suit various market conditions.
- Integrates seamlessly with volatility bands and trend filters to enhance accuracy.
Indicator Chart
The chart displays the Awesome OC indicator situated in a dedicated window below the price candles.
It shows the histogram transitioning from negative to positive territory to highlight a bullish surge.
Red bars indicate declining momentum while orange bars signal active trend expansion for the selected currency pair.
Guide to Trade with Awesome OC Indicator
Buy Rules
- Monitor the histogram for a transition from the negative zone to the positive zone.
- Wait for the first orange bar to close above the 0.00 zero level.
- Confirm that the overall trend direction is upward using a moving average.
- Enter a buy position at the open of the subsequent candle.
Sell Rules
- Monitor the histogram for a transition from the positive zone to the negative zone.
- Wait for the first orange bar to close below the 0.00 zero level.
- Confirm that the overall trend direction is downward using a moving average.
- Enter a sell position at the open of the subsequent candle.
Stop Loss
- Place the stop loss a few pips below the most recent swing low for buy trades.
- Place the stop loss a few pips above the most recent swing high for sell trades.
- Ensure the stop level remains protected by technical levels on the chart.
Take Profit
- Exit the trade when the histogram changes color in the opposite direction.
- Consider closing the position if the histogram crosses back over the zero line.
- Target a reward to risk ratio of at least two to one for consistent results.
Awesome OC & Moving Average Combo Forex Day Trading Strategy MT4
This MT4 day trading strategy combines momentum signals from the Awesome OC Indicator with trend confirmation from the Moving Average Combo Signals Indicator.
The Awesome OC histogram shows momentum shifts, giving a buy signal when it crosses back above zero and a sell signal when it drops below zero.
The Moving Average Combo indicator provides directional confirmation, with green arrows indicating a bullish trend and red arrows indicating a bearish trend.
Combining these two indicators helps traders identify high-probability entries aligned with the current market trend.
This strategy works best on M15 and M30 charts, making it suitable for day trading.
By using both momentum and trend confirmation, the strategy reduces false signals and provides clearer entries and exits.
Buy Entry Rules
- Check that the Moving Average Combo indicator shows a green arrow, confirming a bullish trend.
- Wait for the Awesome OC histogram to cross back above zero.
- Enter a buy trade immediately after the histogram crosses above zero in alignment with the green arrow.
- Place the stop loss 3 to 5 pips below the most recent swing low.
- Close the trade when the Awesome OC histogram crosses back below zero or the Moving Average Combo arrow turns red.
Sell Entry Rules
- Confirm that the Moving Average Combo indicator shows a red arrow, indicating a bearish trend.
- Wait for the Awesome OC histogram to cross back below zero.
- Enter a sell trade immediately after the histogram crosses below zero in alignment with the red arrow.
- Place the stop loss 3 to 5 pips above the most recent swing high.
- Close the trade when the Awesome OC histogram crosses back above zero or the Moving Average Combo arrow turns green.
Advantages
- Combines momentum and trend indicators for high-probability day trading setups.
- Works well on M15 and M30 timeframes, suitable for intraday trades.
- Helps avoid entering trades against the prevailing trend.
- Reduces false entries by requiring both indicators to align.
Drawbacks
- Small stop losses can be triggered by short-term volatility.
- Not suitable for traders who prefer long-term or swing trading.
Case Study 1
On EURJPY M15 during the London session, the Moving Average Combo indicator displayed a green arrow and the Awesome OC histogram crossed back above zero.
A buy trade was entered with a 12 pip stop loss.
Price moved upward steadily, and the trade was closed when the histogram crossed back below zero, capturing 38 pips in profit.
Case Study 2
On GBPAUD M30 during the New York session, the Moving Average Combo indicator showed a red arrow and the Awesome OC histogram crossed below zero.
A sell trade was executed with a 17 pip stop loss.
Price declined in line with the trend, and the trade was closed when the histogram crossed back above zero, netting 56 pips.
Strategy Tips
- Only take trades when both the Awesome OC histogram and the Moving Average Combo arrow align in direction.
- Trade during high liquidity sessions to reduce slippage and ensure smooth price movement.
- Set realistic pip targets and exit when the histogram or arrow signals a trend change.
- Keep a trading log to track which pairs and timeframes provide the most reliable signals.
Download Now
Download the “AwesomeOC.mq4” MT4 indicator
FAQ
How does the OC modification affect the signal frequency?
The OC version applies additional smoothing to the standard histogram logic.
This results in fewer signals but higher accuracy because it ignores minor price ripples that do not represent a genuine change in momentum.
Can I change the moving average periods within the settings?
Yes. The indicator allows you to modify the fast and slow periods used to calculate the histogram.
Shortening the periods makes the Awesome OC indicator more sensitive for scalping, while lengthening them is better for identifying major swings on daily charts.
Which currency pairs provide the best results for zero-line crosses?
The Awesome OC indicator thrives on pairs with high liquidity and consistent trending behavior like EUR/USD or GBP/JPY.
It performs best during the London and New York overlaps when volume is high enough to sustain directional momentum after a crossover occurs.
Summary
The Awesome OC indicator is a reliable upgrade for traders who appreciate the simplicity of momentum oscillators.
It improves upon traditional designs by offering a cleaner signal line and more stable histogram bars.
This makes it an excellent choice for navigating volatile markets where standard indicators might produce too much noise.
The ability to distinguish between trend exhaustion and trend acceleration is the primary benefit of this tool.
While it is highly effective on its own, adding a trend filter can further increase its performance.
