Triple AO Wave Rider

Key Benefits & Applications

The Triple AO Wave Rider transforms the classic Awesome Oscillator into a sophisticated momentum system that gives traders a clear edge in identifying wave patterns and reversal zones. Instead of watching multiple AO indicators, this unified system combines three timeframes into one powerful wave strength score.

Wave Momentum Detection

The indicator excels at showing when momentum is building or fading across multiple timeframes. The wave score ranges from -100 to +100, with dynamic color coding that instantly reveals wave strength:

• Green histogram bars: Strong upward momentum with all timeframes aligned
• Red histogram bars: Strong downward momentum with all timeframes aligned
• Yellow bars: Wave exhaustion warning - momentum may be overextended
• Gray bars: Mixed structure - timeframes showing conflicting signals

The momentum line (cyan) tracks how quickly the wave is building or fading, helping you spot acceleration and deceleration in real-time.

Triple AO Wave Rider displaying wave strength with histogram colors and momentum line acceleration signals

Buying Dips in Uptrends

When the wave score is positive but pulls back toward the 20 level, this often represents a dip-buying opportunity in an ongoing uptrend. The key is watching for the wave structure to remain aligned (green dots) while the momentum line shows deceleration is ending.

Look for these dip-buying setups:

• Wave score above 20 but declining from higher levels
• Structure dots remain green (all timeframes still bullish)
• Momentum line bottoms out and starts turning higher
• Price action shows support at key levels during the dip

The Triple AO helps you distinguish between healthy pullbacks and actual trend reversals by monitoring all three timeframes simultaneously.

Using wave score pullbacks and structure alignment to identify high-probability dip-buying opportunities

Shorting Rips in Downtrends

In downtrends, the indicator helps identify when rallies are just temporary “rips” rather than genuine reversals. When the wave score is negative but bounces toward the -20 level, this often presents shorting opportunities.

Key shorting signals include:

• Wave score below -20 but bouncing from lower levels
• Structure dots remain red (all timeframes still bearish)
• Momentum line peaks and starts declining again
• Price rallies into resistance but fails to break higher

The dynamic weighting system gives more emphasis to the slower timeframe during established trends, helping filter out false reversal signals during temporary bounces.

Identifying short-selling opportunities during downtrend rallies using wave score bounces and momentum line peaks

Reversal Pattern Recognition

The Triple AO Wave Rider automatically detects potential reversal patterns by analyzing extreme readings combined with momentum shifts. Reversal arrows appear when specific conditions are met:

Bullish Reversal Signals:

• Wave score below -40 (oversold conditions)
• Momentum line rising above 10 (acceleration turning positive)
• Fast timeframe turns green (immediate momentum shifting)
• Green arrow appears below the histogram

Bearish Reversal Signals:

• Wave score above 40 (overbought conditions)
• Momentum line falling below -10 (acceleration turning negative)
• Fast timeframe turns red (immediate momentum shifting)
• Red arrow appears above the histogram

These signals work best when combined with price action confirmation and key support/resistance levels.

Automatic reversal signal detection with arrows marking high-probability turning points based on wave exhaustion

Installation Instructions

1. Copy the ThinkScript code provided with your Premium Bundle purchase
2. Open ThinkorSwim and go to Studies → Create Study
3. Select thinkScript Editor tab
4. Paste the complete code and name it “Triple AO Wave Rider”
5. Save and apply to your chart in the lower pane

Recommended Settings

Default Parameters:

• Fast AO: 3/21 periods (captures immediate momentum shifts)
• Medium AO: 5/34 periods (balances speed and smoothness)
• Slow AO: 8/55 periods (confirms longer-term momentum)
• Wave Exhaustion Level: 80 (identifies extreme readings)
• Show Wave Structure: Yes (displays alignment dots)

Optimal Timeframes:

• 1-minute charts: Best for scalping with quick reversals
• 2-minute charts: Excellent balance for day trading
• 3-minute charts: Good for swing entries and trend following
• 5-minute charts: Works well for position sizing and confirmation

Advanced Trading Applications

Wave Exhaustion Strategy: When the wave score exceeds ±80 and shows yellow exhaustion warnings, prepare for potential reversals. The indicator becomes most valuable when these extreme readings coincide with key price levels.

Structure Divergence Analysis: Watch for situations where the fast timeframe (immediate momentum) diverges from the slow timeframe (trend momentum). This often precedes significant reversals, especially when combined with extreme wave scores.

Momentum Acceleration Plays: The momentum line helps identify when waves are accelerating. Strong acceleration (momentum line above 15 or below -15) often leads to extended moves, making these ideal for trend-following entries.

Multi-Wave Confirmation: Use the structure dots to confirm when all three timeframes are aligned. Green dots (all bullish) or red dots (all bearish) provide the strongest signals for trend continuation trades.

The Triple AO Wave Rider excels at removing the guesswork from momentum analysis by combining multiple timeframes into one clear, actionable signal system.