/**
* Awesome Oscillator Indicator
* Momentum oscillator using difference between fast and slow SMA of median price
*/
import { calculateSMA } from './moving-averages';
export function calculateAwesomeOscillator(highs, lows, fastPeriod = 5, slowPeriod = 34) {
if (highs.length < slowPeriod || lows.length < slowPeriod) {
return {
ao: null,
signal: null,
histogram: null,
};
}
// Calculate median price (H+L)/2
const medianPrices = [];
for (let i = 0; i < highs.length; i++) {
medianPrices.push((highs[i] + lows[i]) / 2);
}
// Calculate fast and slow SMA of median prices
const fastSMA = calculateSMA(medianPrices, fastPeriod);
const slowSMA = calculateSMA(medianPrices, slowPeriod);
if (fastSMA.length === 0 || slowSMA.length === 0) {
return {
ao: null,
signal: null,
histogram: null,
};
}
// AO = Fast SMA - Slow SMA
const currentFastSMA = fastSMA[fastSMA.length - 1];
const currentSlowSMA = slowSMA[slowSMA.length - 1];
const ao = currentFastSMA - currentSlowSMA;
// Determine histogram color (green when AO > 0, red when AO < 0)
let histogram = null;
if (ao > 0)
histogram = 'green';
else if (ao < 0)
histogram = 'red';
else
histogram = 'zero';
// Determine signal based on AO movement (would need historical data for proper signal)
// For now, use simple interpretation
let signal = null;
if (histogram === 'green')
signal = 'bullish';
else if (histogram === 'red')
signal = 'bearish';
else
signal = 'neutral';
return {
ao,
signal,
histogram,
};
}
