This is a guide of the trading strategy. For a guide on how to read the graphs on the analysis page, click here.
The Awesome Indicator is an indicator with an awesome name! It is simple the difference between a fast and slow Simple Moving Average (SMA). The unique feature is that it uses the mid price instead of the closing price. The indicator is used for detecting trends and momentum.
In our strategy the settings are:
- Fast SMA window = 5 periods
- Slow SMA window = 34 periods.
The Data Trader Awesome Indicator strategy generates a BUY signal when the fast SMA line is above the slow SMA line. Exit when the fast SMA line falls below the slow SMA line. It generates a SELL signal when the slow SMA line is above the fast SMA line. Exit when the slow SMA line falls below the fast SMA line.
