AC Technical Analysis & Acceleration/Deceleration Signals
Developed by Bill William
Acceleration/Deceleration quantifies the speeding up or slowing down of directional momentum: it is frequently employed in evaluating movements across both equity and general trading markets.
This technical indicator changes direction before price changes its direction.
AC is used to generate early market signals of the trend reversals.
A change in direction signaled by the Acceleration/Deceleration (AC) component typically presages an imminent shift in the direction of price movement.
Technical Analysis and Generating Signals
Zero-line is the spot where the momentum is at balance with the acceleration or deceleration.
If AC exceeds zero, it indicates that acceleration is more likely to continue its upward trajectory.
If Acceleration Deceleration is lesser 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 trade signal when it's crossed.
A purchase or promote exchange is generated/derived when the color of the AC adjustments from shade crimson to inexperienced.
Buy Signal
When the current column transitions from red to green, it is interpreted as a buy signal.
When ruling column is colored red, you can't buy.
A buying indication is generated when the indicator is registering above the Zero line and the most recent price bar is colored green.
When the AC is less than zero and the current bar is green, a confirmation signal is necessary for a buy trade: typically, three green bars serve as an additional confirmation.
Sell Trading Signal
When the ruling column changes from green to red this is interpreted as a sell.
When the ruling column is colored green, you can not sell.
When the indicator falls below zero and the current bar is red, a sell trade signal is generated.
If the AC reading surpasses zero and the current bar color is red, a confirmation signal is prerequisite for initiating a sell transaction: typically, observing three consecutive green bars serves as an alternate confirmation trigger.
Technical Analysis in XAU/USD Trading
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