AC Technical Analysis & Acceleration/Deceleration Signals
Developed by Bill William
Acceleration/Deceleration measures acceleration and deceleration of the trend momentum - it is popularly used to analyze both stock markets & trading market movements.
This technical indicator changes direction before the price changes its direction.
AC is used to generate early signals of trend reversals.
If AC changes direction then price direction will soon follow.
Technical Analysis and Generating Signals
Zeroline is the spot where the momentum is at balance with acceleration or deceleration.
If AC 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 downward movement.
The Zero point isn't regarded as a buy or sell trade signal when it's crossed.
A buy or sell trade is generated when the color of the AC changes from red to green.
Buy Trade Signal
When the current column shifts from red to green this is interpreted as a buy.
When the current column is colored red, you can not buy.
When the indicator is higher than Zero & 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. 3 green bars is usually another confirmation.
Sell Trading 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 trade 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 XAUUSD Trading
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