Acceleration/Deceleration AC Indicator Analysis Signals
Developed & Created by Bill William
Acceleration/Deceleration measures acceleration and deceleration of the trend momentum - it's popularly used to analyze and interpret both stock markets and market movements.
This technical indicator changes direction before 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.
FX Analysis & 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's easier for the acceleration to continue in the upward movement.
If Acceleration Deceleration is lower and lesser 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 trading signal when it is crossed.
A buy/sell trade position is generated/derived when color of the AC indicator shifts from red to green.
Buy Signal
When the present column shifts from red to green this is interpreted and viewed as a buy.
When present column is color 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 and lesser than zero and the present 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 present column shifts from green to red this is analyzed/interpreted as a sell.
When present column is colour green, you can not sell.
When the indicator is lesser than Zero and the present bar is red is a sell trade signal is generated.
When the AC is higher than zero and the present bar is red a confirmation trading signal is required for a sell. Three green bars is also another confirmation.
Analysis in Forex Trading
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