eh oh it's the awesome oscillator
fooling misguided traders since 2004 so
as a lot of you know if you follow me on
Twitter had some difficulties this week
with the video I wanted to put out so we
will postpone that till next week and
cross our fingers but for now we are
going to kind of add another video that
I didn't even plan on making it's gonna
be a filler episode this week traders
but usually when I do filler episodes
people really like them because normally
we're just talking about indicators
which is what we like to do anyway here
so I was not going to talk about this
one those of you who are pretty advanced
in the no-nonsense forex way of trading
probably understand why I'm not really
high on this indicator at all but I
think there are some takeaways that we
can get just by looking at it and I
think it will particularly help traders
who are either beginners or intermediate
in this whole way we trade so let's jump
right into it here's what you have to
know about the awesome oscillator it is
included in your mt4 already in the
forex indicators video which is the very
first video in the technical analysis
playlist I said look you have a lot of
indicators you're going to need to test
just go ahead and start with the ones
you already have
and for this way of trading you need mt4
don't sit there and think you can just
do all this on trading view it's not
going to be great experience suck it up
get mt4 and when you're testing
indicators start with the ones that are
already there it's going to give you
good practice it's going to show you
what you need to be looking for and you
might actually run into one or two that
work really well we certainly have here
at the channel that's the best indicator
in the whole wide world is already
included in your mt4 package so just
goes to show now there's no reason to
get way ahead of yourself when you
already have a nice little suite of
indicators right there in front of you
now as far as the
awesome oscillator goes it was created
in 2004 I think it is a Bill Williams
indicator his book came out in 2004
that's the only correlation I can really
see but this is fine now as you guys
know spot Forex pretty much came around
in 1996 I usually already put one strike
against any indicator or tool that was
created before that because it was
created typically are more cymose likely
for stocks which is a market that
operates differently than the forex
market does I will still check those
indicators out but at least this
indicator is not already starting with
one strike against it if I am correct
about it coming up in 2004 it is a trend
indicator if you guys remember the trend
indicators video you should definitely
watch that before you start watching
individual indicator videos like this
one it is a zero cross we look for the
trend when price or really in this case
the histogram crosses a zero line and
that tells us to go long or short there
are other things you can look for on
this oscillator and we will look at
those as well and it isn't the bill
Williams family you're going to notice
that Bill Williams has an entire list of
indicators he made already programmed on
your mt4 now what does this mean
not much but usually people who like one
like the others and people who don't
like one typically don't find a lot of
value in the others either and that's
the camp I fall into however I think
there are things we can learn just by
giving this thing a chance and seeing
what it can do so let's put it up on our
charts and just just see let's just take
a look so here we are on the euro dollar
daily chart it is New York City if you
can make it here you can make it
anywhere because the euro dollar is one
of the worst pairs you can trade did a
whole video on this yes I still trade it
but I don't recommend it for beginners
and it's something I just advise
everybody uses a bit more caution on
when they
themselves but this is really good for
indicator testing because if an
indicator or an oscillator or any kind
of tool can do well here you are most
likely going to see even better results
on different pairs so for that reason
and many other reasons we always start
here on no-nonsense Forex so let's go
ahead and pull the awesome oscillator up
now I did a video on video podcast 2 on
quicker ways to kind of sort through
indicators when you test them just by
eyeballing it once you go outside of the
mt4 suite and start looking for other
indicators to use you're normally going
to see a picture of them just so you can
kind of see what they do and a lot of
times you can just look at it and say
okay that's not at all what I'm looking
for either it's something that calls
reversals it does some other kind of
mess that I'm not interested in you know
really easy to see but with the mt4
indicators you don't get that luxury
because you actually have to pull them
up first so I recommend you do that with
every one of these so we're gonna go to
the awesome oscillator now and you're
gonna notice another well not another
the first strike against it is you
cannot change the settings on it you are
stuck with whatever it gives you so you
better hope it works amazingly because
you have no chance to make this thing
better at its core you know the only way
you have a chance to make this thing
better is by adding other indicators to
it which is what you're going to do to
your main trend indicator anyway so what
you really want to look for here is
something that works pretty darn well on
its own because an improved Ferrari is
going to be a lot better than having an
improved Fiat if that makes any sense
so let's go ahead and just put this up
I'm actually because it is a zero cross
type indicator I'm just gonna put a zero
line there silver should be fine and
let's see what that does
okay good so
pretty simple with a zero cross when you
have this histogram and that's all you
have you are looking for moves to wear
this thing flips from negative to
positive or positive to negative and as
soon as that flip occurs that is where
you are going to want to enter I don't
know if you guys knew this it's kind of
common in the indicator space that all
this thing is when it comes to these
entries right here is a moving average
crossover all it is I think it's the 34
and the 5 and all bill Williams did was
make it a histogram and put his name on
it so Bill Williams you are cheating
that's not cool
but hey look for all your programmers
out there if you want to take any
combination of any two moving averages
and make it a crossover and turn it into
a histogram and call it the duck butter
you know a hosta later anything you want
I mean literally there are no
limitations there are no rules against
doing this and you want to become famous
and write a book or sell it whatever you
can do it there's literally no
restrictions against it apparently so
there really is not much genius behind
this thing from the start I mean it does
do some other things with the color
changes which we're going to talk about
too but let's go ahead and kind of test
it out a little bit and just see because
it's not giving us too many signals
which is for training purposes nice
because there's less to do so I really
hate my screencasting software it's not
letting me do the control F so right
here not where it was neutral but where
it actually started going positive this
would have been a long entry right here
and that would have been I don't want
the ATR pulled up but we can all pretty
much agree that that would have been a
winner in some capacity right there so
good and they got one win now let's go
to this short signal right here it was
the only short signal we had on this
entire screen right here nope that was
certainly a loss
at no point would you have gotten any
place where you could have taken profit
off and you would have either lost here
or here depending on where your stop
loss was so one win one loss let's go
ahead and check this one out
No would have got you in on that nice
little pullback candle there and there
was certainly money to be made on that
trade so two wins one loss
that's 67% you know say what you want
about this thing but that is worth a
closer look so what I would do just with
that part of it is start looking on a
few other pairs to see what my
percentage would be there as well this
would have actually made it past my
first cut if this is all I had to look
at believe it or not as basic as this
oscillator is and as much as I really
don't like it if I just had this to go
on that's a positive
I mean 66 67 percent win rate you know
you're moving on to the next round it
would have probably gotten destroyed
later but when you're looking at
something like this and two wins and one
loss is all you have you can officially
put this in the winners column and move
on to either another chart another
another currency pair or another time
frame however you do your indicator
back-testing I did a whole podcast on
this as well you can just run a search
on my channel but don't overthink this
you can understand most charting tools
are coin flips at best that's a 50% win
rate we've just moved up to a 66 67 as
far as we know you know you got to go
further with it but that's really what
you're looking for but also remember to
when it comes to trend indicators if
there's ever a really nice trend almost
every trend indicator is going to catch
it at some point what we really want to
know is how soon does it get us into
that
trend because any extra pips we can grab
along the way you know definitely add up
over time and you know we also want to
see at the end of the day how many
losses it prevents us from getting into
there are some trend indicators which
will get you in a lot more losses and
you guys know our mantra here we win by
not losing so going forward when you
really want to grab that great
confirmation indicator that you're gonna
lock on to for a while that's going to
be your main criteria but beginning
traders who are testing indicators run
into this all the time they find
something that gets them into this nice
big trend and they get hearts in their
eyes but they don't realize that most
indicators that attempt to do this are
going to get you into this at some point
and make you pips it does not make it a
good choice you need to go further and
that's how you do it so let's go ahead
and look at some of the other ways that
this oscillator tries to get you into
trades you're going to notice when the
color changes
these are reversal trades you can get
into so if a guy can already tell this
is gonna be ugly so you have a good one
here you know you would have pretty much
not called a bottom but done pretty darn
close and done really well on that trade
right there if you just waited from this
thing to turn red to green and try to
catch the move again you might test
something like this and fall in love
with it but you need to go further
because if you did go further you'd
realize a lot of times these reversal
signals absolutely killed you so you're
supposed to go along here disaster again
reversal here unless you just forgot to
put a stop loss on you would have
certainly gotten stopped out at some
point let's see where else to try to
call reversal here disaster here now and
independent where you take profit you
probably didn't get any here it's
probably another disaster finally got a
good one
and then I wanted you to go short here
no like here again that might have been
a little something there and then I
wanted you to go long here no really
really bad this for many reasons is why
we don't try to call reversals in forex
we don't even look for indicators that
attempt to do this because you could
just sit there and do what I do every
time and mark it out put it on a
spreadsheet you will find that using
indicators or using anything to call
reversals in the long term is going to
hurt and hurt really bad but there is
one other way we can use this
experienced no-nonsense forex traders
probably already know but instead of
doing the color change to find a
reversal we can do color changes to find
continuation trades now if you don't
know what continuation trades are I made
an entire video on it please don't ask
questions in the comments section when
there's probably already a video which
addresses that but let's take a look at
some of these now right off the start we
had one here histogram is already below
the zero line at some point it flipped
to green but then it flipped back to red
and it would have gotten us in right
here this is hard without my ATR up but
I didn't want to make the screen messy
so probably a win there but at the very
least it wasn't a loss so that's good
now how about here
same thing below the histogram flipped
from green to red
hard to say I can't really tell you what
happened there now normally when you see
this flip to read and then right back to
green that's probably a loss but you
need to test it anyway because you just
don't really know so you would have gone
short on this very bullish candle but
then on the very next candle you see the
line flip back to green that is an
obvious get out signal and so you really
wouldn't have done much there no this
one told you to go sure you would have
actually had this many pips before the
history grammar again would have told
you to get out because the color changed
so not much to really say on these
you're just gonna have to test I can
tell you right here that's not a win at
all that was a bad continuation trade
how about this one here nope really bad
but you always have to look you know no
matter how basic these oscillators are
you have to understand what you're
looking for and what there might be of
use for in these things and test it out
and that's how you do it and I think the
awesome oscillator is a great way to
show you this because it's pretty basic
at its core but it can do a few
different things and this will apply to
many many other indicators you run into
in the future so it's okay to be
dismissive if you can tell right away
it's not what you want but give it a
good look and if you think there's any
redeeming quality you might be able to
extract out of it test it I mean what's
the worst that can happen you know you
find something amazing that gives you
tons and tons of pips over the lifetime
of your trading career you know it's
worth sitting down and at least looking
at it if you think there might be
something there and the awesome
oscillator is definitely something I
would give a look I've already looked at
it I didn't like it but if I were to
just start now I would definitely take
the main entries that we saw right here
be pretty happy with that two-in-one
record and you know kind of put it in
the winners pile and then test it even
further later
so in conclusion it really isn't a great
indicator to me but you need to test it
for yourself you and I run different
systems so you have to give all of these
a fair go but you need to also know and
I hope this video helped you in this
process
when you vary when you put these things
on the screen for the very first time
all right what are some of the things I
immediately need to start looking for
because that awesome oscillator had this
basic as it was had three different
aspects to it and even though we don't
use the reversals you need to be able to
recognize those things off the bat
because you don't want to miss anything
you know the worst thing you can do is
be lazy and overly dismissive and not
catch all of the ways these things can
be used and not test those out because
what if you just completely passed on
something that could have worked amazing
in your system you really do have to
keep an open mind here you know be
optimistic but cautiously optimistic
when you test these out but there's a
absolute rule based process on how to
test these out I did them in podcast
episodes I will link some of them down
below and it will also link the
beginners video down below as well
because that's going to give you the
complete roadmap on how to trade this
system and put your own trading
algorithm together based on forex
indicators and this is what you're going
to need to do if you're going to be
successful here traders and this is what
this channel does you cannot go on
YouTube look up awesome oscillator watch
your random video and then expect to go
make money it just doesn't work that way
it's a five trillion dollar a day market
it is not that simple
but thankfully it doesn't have to be
overly complex and can still be a lot of
fun and this is what this channel
attempts to bring to you so subscribe
hit the bell this whole thing is a
process it's a great
and this is the only forex trading
youtube channel on the planet which is
taking the time to actually put this
entire free curriculum together for you
more videos still to come I'll see y'all
next week go get it