AC CFD Technical Analysis and Acceleration/Deceleration CFD Signals

Created by Bill Williams

Acceleration/Deceleration measures acceleration and deceleration of the cfd trend momentum - it is popularly used to analyze both stock markets and cfds trading market movements.

This cfds technical indicator changes direction before the cfd price changes its direction.

Acceleration/Deceleration is used to generate early trading signals of cfd trend reversals.

If AC changes direction then cfd price direction will soon follow.

CFDs Technical Analysis and How to Generate Trading Signals

Zeroline is the spot where the momentum is at balance with acceleration or deceleration.

If Acceleration/Deceleration is higher than Zero, then it is easier for the acceleration to continue in the upward movement.

If Acceleration/Deceleration is lower than Zero, then it is easier for the deceleration to continue in the downwards movement.

The Zero point isn't regarded as a buy or sell signal when it is crossed.

A buy or sell cfd trade is generated when the color of the AC changes from red to green.

Buy CFDs Signal

When the current column changes from red to green this is interpreted as a buy.

When the current column is colored red, you can't buy.

When the indicator is higher than Zero & the current bar is green a buy cfd trade signal is generated.

When the AC is lower than zero and the current bar is green a confirmation signal is required for a buy. Three green bars is usually another confirmation.

Sell CFD Signal

When the current column changes from green to red this is analyzed as a sell.

When the current column is colored green, you can't sell.

When the indicator is lower than Zero and the current bar is red is a sell cfd trade signal is generated.

When the AC is higher than zero & the current bar is red a confirmation signal is required for a sell. Three green bars is usually another confirmation.

Technical Analysis in CFDs Trading