OPEN-SOURCE SCRIPT
Awesome Oscillator (AO) with Signals [AIBitcoinTrend]

๐ฝ Multi-Scale Awesome Oscillator (AO) with Signals (AIBitcoinTrend)
The Multi-Scale Awesome Oscillator transforms the traditional Awesome Oscillator (AO) by integrating multi-scale wavelet filtering, enhancing its ability to detect momentum shifts while maintaining responsiveness across different market conditions.
Additionally, it features real-time divergence detection and an ATR-based dynamic trailing stop, making it a powerful tool for momentum analysis, reversals, and breakout strategies.

๐ฝ What Makes the Multi-Scale AO โ Wavelet-Enhanced Momentum Unique?
Unlike traditional AO indicators, this enhanced version leverages wavelet-based decomposition and volatility-adjusted normalization, ensuring improved signal consistency across various timeframes and assets.

๐ฝ The Math Behind the Indicator
๐พ Wavelet-Based AO Smoothing
The indicator applies multi-scale wavelet decomposition to extract high-frequency, medium-frequency, and low-frequency trend components, ensuring an optimal balance between reactivity and smoothness.
Pine Scriptยฎ
Why It Works:
๐พ Z-Score Normalization
To ensure consistency across different markets, the Awesome Oscillator is normalized using a Z-score transformation, making overbought and oversold levels stable across all assets.
Pine Scriptยฎ
Why It Works:
๐ฝ How Traders Can Use This Indicator
๐พ Divergence Trading Strategy

๐พ Buy & Sell Signals with Trailing Stop
Bullish Setup:
Bearish Setup:

๐ฝ Why Itโs Useful for Traders
๐ฝ Indicator Settings
Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
The Multi-Scale Awesome Oscillator transforms the traditional Awesome Oscillator (AO) by integrating multi-scale wavelet filtering, enhancing its ability to detect momentum shifts while maintaining responsiveness across different market conditions.
Unlike conventional AO calculations, this advanced version refines trend structures using high-frequency, medium-frequency, and low-frequency wavelet components, providing traders with superior clarity and adaptability.
Additionally, it features real-time divergence detection and an ATR-based dynamic trailing stop, making it a powerful tool for momentum analysis, reversals, and breakout strategies.
๐ฝ What Makes the Multi-Scale AO โ Wavelet-Enhanced Momentum Unique?
Unlike traditional AO indicators, this enhanced version leverages wavelet-based decomposition and volatility-adjusted normalization, ensuring improved signal consistency across various timeframes and assets.
โ Wavelet Smoothing โ Multi-Scale Extraction โ Captures short-term fluctuations while preserving broader trend structures.
โ Frequency-Based Detail Weights โ Separates high, medium, and low-frequency components to reduce noise and improve trend clarity.
โ Real-Time Divergence Detection โ Identifies bullish and bearish divergences for early trend reversals.
โ Crossovers & ATR-Based Trailing Stops โ Implements intelligent trade management with adaptive stop-loss levels.
๐ฝ The Math Behind the Indicator
๐พ Wavelet-Based AO Smoothing
The indicator applies multi-scale wavelet decomposition to extract high-frequency, medium-frequency, and low-frequency trend components, ensuring an optimal balance between reactivity and smoothness.
sma1 = ta.sma(signal, waveletPeriod1)
sma2 = ta.sma(signal, waveletPeriod2)
sma3 = ta.sma(signal, waveletPeriod3)
detail1 = signal - sma1 // High-frequency detail
detail2 = sma1 - sma2 // Intermediate detail
detail3 = sma2 - sma3 // Low-frequency detail
advancedAO = weightDetail1 * detail1 + weightDetail2 * detail2 + weightDetail3 * detail3
Why It Works:
- Short-Term Smoothing: Captures rapid fluctuations while minimizing noise.
- Medium-Term Smoothing: Balances short-term and long-term trends.
- Long-Term Smoothing: Enhances trend stability and reduces false signals.
๐พ Z-Score Normalization
To ensure consistency across different markets, the Awesome Oscillator is normalized using a Z-score transformation, making overbought and oversold levels stable across all assets.
normFactor = ta.stdev(advancedAO, normPeriod)
normalizedAO = advancedAO / nz(normFactor, 1)
Why It Works:
- Standardizes AO values for comparison across assets.
- Enhances signal reliability, preventing misleading spikes.
๐ฝ How Traders Can Use This Indicator
๐พ Divergence Trading Strategy
Bullish Divergence
- Price makes a lower low, while AO forms a higher low.
- A buy signal is confirmed when AO starts rising.
Bearish Divergence
- Price makes a higher high, while AO forms a lower high.
- A sell signal is confirmed when AO starts declining.
๐พ Buy & Sell Signals with Trailing Stop
Bullish Setup:
โ AO crosses above the bullish trigger level โ Buy Signal.
โ Trailing stop placed at Low - (ATR ร Multiplier).
โ Exit if price crosses below the stop.
Bearish Setup:
โ AO crosses below the bearish trigger level โ Sell Signal.
โ Trailing stop placed at High + (ATR ร Multiplier).
โ Exit if price crosses above the stop.
๐ฝ Why Itโs Useful for Traders
- Wavelet-Enhanced Filtering โ Retains essential trend details while eliminating excessive noise.
- Multi-Scale Momentum Analysis โ Separates different trend frequencies for enhanced clarity.
- Real-Time Divergence Alerts โ Identifies early reversal signals for better entries and exits.
- ATR-Based Risk Management โ Ensures stops dynamically adapt to market conditions.
- Works Across Markets & Timeframes โ Suitable for stocks, forex, crypto, and futures trading.
๐ฝ Indicator Settings
- AO Short Period โ Defines the short-term moving average for AO calculation.
- AO Long Period โ Defines the long-term moving average for AO smoothing.
- Wavelet Smoothing โ Adjusts multi-scale decomposition for different market conditions.
- Divergence Detection โ Enables or disables real-time divergence analysis. Normalization Period โ Sets the lookback period for standard deviation-based AO normalization.
- Cross Signals Sensitivity โ Controls crossover signal strength for buy/sell signals.
- ATR Trailing Stop Multiplier โ Adjusts the sensitivity of the trailing stop.
Disclaimer: This indicator is designed for educational purposes and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
๐พ Adam at AI Bitcoin Trend
๐ฝ We are the Quants!
๐ Be part of the fastest-growing quant trading community! ๐
discord.gg/7weCgzN5a7
๐ Famous on Threads!
๐ช simpleaitrading.com/
๐ฝ We are the Quants!
๐ Be part of the fastest-growing quant trading community! ๐
discord.gg/7weCgzN5a7
๐ Famous on Threads!
๐ช simpleaitrading.com/
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
๐พ Adam at AI Bitcoin Trend
๐ฝ We are the Quants!
๐ Be part of the fastest-growing quant trading community! ๐
discord.gg/7weCgzN5a7
๐ Famous on Threads!
๐ช simpleaitrading.com/
๐ฝ We are the Quants!
๐ Be part of the fastest-growing quant trading community! ๐
discord.gg/7weCgzN5a7
๐ Famous on Threads!
๐ช simpleaitrading.com/
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.