HPotter

Bill Williams. Awesome Oscillator (AO) Signal Line

This indicator is based on Bill Williams` recommendations from his book
"New Trading Dimensions". We recommend this book to you as most useful reading.
The wisdom, technical expertise, and skillful teaching style of Williams make
it a truly revolutionary-level source. A must-have new book for stock and
commodity traders.
The 1st 2 chapters are somewhat of ramble where the author describes the
"metaphysics" of trading. Still some good ideas are offered. The book references
chaos theory, and leaves it up to the reader to believe whether "supercomputers"
were used in formulating the various trading methods (the author wants to come across
as an applied mathemetician, but he sure looks like a stock trader). There isn't any
obvious connection with Chaos Theory - despite of the weak link between the title and
content, the trading methodologies do work. Most readers think the author's systems to
be a perfect filter and trigger for a short term trading system. He states a goal of
10%/month, but when these filters & axioms are correctly combined with a good momentum
system, much more is a probable result.
There's better written & more informative books out there for less money, but this author
does have the "Holy Grail" of stock trading. A set of filters, axioms, and methods which are
the "missing link" for any trading system which is based upon conventional indicators.
This indicator plots the oscillator as a histogram where periods fit for buying are marked
as blue, and periods fit for selling as red. If the current value of AC ( Awesome Oscillator )
is over the previous, the period is deemed fit for buying and the indicator is marked blue.
If the AC values is not over the previous, the period is deemed fir for selling and the indicator
is marked red.
Remove from Favorite Scripts Add to Favorite Scripts
////////////////////////////////////////////////////////////
//  Copyright by HPotter v2.0 18/09/2014
//    This indicator is based on Bill Williams` recommendations from his book 
//    "New Trading Dimensions". We recommend this book to you as most useful reading.
//    The wisdom, technical expertise, and skillful teaching style of Williams make 
//    it a truly revolutionary-level source. A must-have new book for stock and 
//    commodity traders.
//    The 1st 2 chapters are somewhat of ramble where the author describes the 
//    "metaphysics" of trading. Still some good ideas are offered. The book references 
//    chaos theory, and leaves it up to the reader to believe whether "supercomputers" 
//    were used in formulating the various trading methods (the author wants to come across 
//    as an applied mathemetician, but he sure looks like a stock trader). There isn't any 
//    obvious connection with Chaos Theory - despite of the weak link between the title and 
//    content, the trading methodologies do work. Most readers think the author's systems to 
//    be a perfect filter and trigger for a short term trading system. He states a goal of 
//    10%/month, but when these filters & axioms are correctly combined with a good momentum 
//    system, much more is a probable result.
//    There's better written & more informative books out there for less money, but this author 
//    does have the "Holy Grail" of stock trading. A set of filters, axioms, and methods which are 
//    the "missing link" for any trading system which is based upon conventional indicators.
//    This indicator plots the oscillator as a histogram where periods fit for buying are marked 
//    as blue, and periods fit for selling as red. If the current value of AC (Awesome Oscillator) 
//    is over the previous, the period is deemed fit for buying and the indicator is marked blue. 
//    If the AC values is not over the previous, the period is deemed fir for selling and the indicator 
//    is marked red.
////////////////////////////////////////////////////////////
study("Bill Williams. Awesome Oscillator (AO) Signal Line")
nLengthSlow = input(34, minval=1, title="Length Slow")
nLengthFast = input(5, minval=1, title="Length Fast")
nLengthMA = input(15, minval=1, title="MA")
nLengthEMA = input(15, minval=1, title="EMA")
nLengthWMA = input(15, minval=1, title="WMA")
bShowWMA = input(type=bool, defval=true, title="Show WMA")
bShowMA = input(type=bool, defval=false, title="Show MA")
bShowEMA = input(type=bool, defval=false, title="Show EMA")
xSMA1_hl2 = sma(hl2, nLengthFast)
xSMA2_hl2 = sma(hl2, nLengthSlow)
xSMA1_SMA2 = xSMA1_hl2 - xSMA2_hl2
xResWMA = wma(xSMA1_SMA2, nLengthWMA)
xResMA = sma(xSMA1_SMA2, nLengthMA)
xResEMA = ema(xSMA1_SMA2, nLengthEMA)
cClr = xSMA1_SMA2 > xSMA1_SMA2[1] ? blue : red
plot(bShowWMA ? xResWMA : na, color = green)
plot(bShowMA ? xResMA : na, color = green)
plot(bShowEMA ? xResEMA : na, color = green)
plot(xSMA1_SMA2, style=histogram, linewidth=1, color=cClr)
Thanks HPotter! Traders will find this unconventional AO indicator with Signal Line very useful!
Reply
HPotter PRO coondawg71
2 years ago
You are welcome
Reply
Dude, you really need to remove/change this explanation of Bill Williams' work, from here and everywhere. False information and negligent speculation.

Here's one: The alligator (aka "Bill Williams 3 Lines") is a holy grail tool. It's a short-cut for elliot wave counting. It's used to determine whether the current wave is impulse or corrective. It was created by a supercomputer (model generated from data).
Here's two: The AO is also a measure of the elliot wave. It's signals correspond to the various phases of the wave. Hence why it works so well. It also requires configuration - you need a (100-140) bars per wave and gotta switch TFs. Hence why you find it inconsistent.

You should probably re-read the book too.
Reply
the_batman PRO the_batman
2 years ago
Ah lemme amend this comment. Sorry for being a rude flamer.

Bill William's work with chaos theory models is groundbreaking and profound. He didn't do the best job explaining it though. Those first few chapters do sound like a metaphysics self-help book, and his meaning isn't immediately apparent. You have to really think hard about what he's saying and work to understand him. (It's kinda like a zen Buddhist text lol.)

Your dismissive, opinionated review of that part of his work amounts to "I don't understand, therefore it is not based on reason". It's definitely based on reason. It's also definitely hard to understand because he didn't do the greatest job explaining.

He released 3 books, and if you read all three of them, you'll get a much better picture. Trading Chaos (1st edition), New Trading Dimensions, and Trading Chaos (2nd edition, an entirely different book). He also released a set of home study DVD videos.
Reply
accidentje
2 years ago
Thank you very much!
Reply
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