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 market price changes its direction.
The AC is used to generate early signals of trend reversals.
If AC changes direction then price direction will soon follow.
Forex Analysis and Generating Signals
Zeroline is the spot where the momentum is at balance with acceleration or 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 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 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 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 than zero and the current bar is green a confirmation signal is required for a buy. 3 green bars also is another confirmation.
Sell Trade Signal
When the current column shifts from green to red this is analyzed as a sell.
When the current column is colour green, you cannot 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 also another confirmation.
Analysis in FX Trading
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