Acceleration/Deceleration

Developed by Bill Williams

Acceleration/Deceleration measures acceleration & deceleration of the commodity trend momentum - it's popularly used to analyze both stock markets & commodity market movements.

This commodity technical indicator changes direction before the commodity price changes its direction.

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

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

Commodities Trading Technical Analysis & How to Generate Trading Signals

Zero-line is the spot where the momentum is at balance with acceleration or deceleration.

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

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

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

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

Buy Trading Signal

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

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

When the indicator is higher than Zero and the current bar is green a buy signal is generated.

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

Sell Trading Signal

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

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

When the indicator is lower than Zero & the current bar is red is a sell signal is generated.

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

Technical Analysis in Commodities Trading