Acceleration/Deceleration AC Indicator Analysis Signals
Developed by Bill William
Acceleration/Deceleration measures acceleration & deceleration of the trend momentum - it is popularly used to analyze both stock markets and market movements.
This indicator changes direction before the price changes its direction.
The AC is used to generate early signals of the trend reversals.
If Acceleration/Deceleration (AC) changes the direction then price direction will follow soon.
Forex Analysis and Generating Signals
Zero-line is the point where the energy is at balance with acceleration/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 and lesser than Zero, then it is easier for the deceleration to continue in the downward movement.
The Zero point is not regarded as a buy or sell trading signal when it is crossed.
A buy/sell trade position is generated/derived when colour of the AC indicator shifts from red to green.
Buy Trade Signal
When the current column shifts from red to green this is interpreted and viewed as a buy.
When the current column is colour red, you can't buy.
When the indicator is higher than Zero and the current bar is green a buy signal is generated.
When the AC is lower and lesser than zero and the current bar is green a confirmation trading signal is required for a buy trade. 3 green bars also is another confirmation.
Sell Trade Signal
When the current column shifts from green to red this is analyzed/interpreted as a sell.
When the current column is colour green, you can't 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 and the current bar is red a confirmation trading signal is required for a sell. Three green bars is also another confirmation.
Analysis in FX Trading
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