Average Sentiment Oscillator (ASO) Indicator is a momentum oscillator that measures the Bull/Bear average.
- Blue line is Bulls %
- Red line is Bears %
The higher line is the one dominating the market sentiment. The middle line (50%) is where both the forces are equal, once they cross that level it can be read as a good entry or exit signal. These signal are more reliable if there is high volume in the market.
Bulls Line (blue) crosses upward the Bears Line (red) – Bullish Trend
Bulls Line leaves the 30% level – Oversold Area
Bears Line (red) crosses upward the Bulls Line (blue) – Bearish Trend
Bears Line leaves the 70% level – Overbought Area
You can chose the period according to your needs, just consider that the longer the period is, the less leading signals will be, but we would obtain also less false signals.
It’s wise not to trade according to this indicatr alone, it’s mostly employed as a trend filter or for entry/exit signals.
- File: ASO.mq4
- Size: 4 Kb