The Awesome Oscillator is a technical indicator that shows the difference between a 5-period Moving Average and a 34-period Moving Average. They are both calculated for the midpoints of the candles, (High+Low)/2. This is a unique indicator that displays the tendencies in the currency market. It is created and designed by Bill Williams.
You may use the Awesome Oscillator in a couple of ways in a strategy. At first you may open a buy position if the Oscillator is above the zero line, and forms a hollow, or to open a sell position if the Oscillator is below the zero line and forms a peak.
A different option is to open a buy position if the indicator is below the zero level, and forms two minimums, but the latest one is not as low as the previous one, or to open a sell position if the indicator forms two maximums above the zero line, but the second one is lower than the previous one.
Finally, you may account crossing the zero line. If the indicator crosses it bottom-up, a buy position should be opened, and if the indicator crosses it top-down, it is the time for the sell position.