AC Technical Analysis & Acceleration/Deceleration Signals
Developed by Bill William
Acceleration/Deceleration measures acceleration & deceleration of the trend momentum - it's popularly used to analyze both stock markets and trading market movements.
This technical indicator changes direction before the price changes its direction.
AC is used to generate early market signals of the trend reversals.
If Acceleration/Deceleration AC changes the direction then price direction will soon follow.
Technical Analysis and Generating Signals
Zero-line is the spot where the momentum is at balance with the acceleration or deceleration.
If AC is higher than Zero, then it is easier for the acceleration to continue in the upwards movement.
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 buy or sell trade is generated/derived when the color of the AC changes from color red to green.
Buy Signal
When the current column shifts from red to green it is interpreted and viewed as a buy.
When the current column is colored red, you as a trader can't buy.
When the indicator is higher than Zero & the current bar is green a buy signal is generated.
When the AC is lesser than zero & the current bar is green a confirmation signal is required for a buy trade. 3 green bars is normally 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 lesser than Zero and the current bar is red is a sell trade signal is generated.
When the AC is higher than zero & the current bar is red a confirmation trading signal is required for a sell trade. three green bars is normally another confirmation.
Technical Analysis in XAU/USD Trading
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