Acceleration/Deceleration AC Indicator Technical Analysis Signals
Developed by Bill Williams
Acceleration/Deceleration measures acceleration & deceleration of the forex trend momentum - it's popularly used to analyze both stock markets & forex market movements.
This MT5 indicator changes direction before the forex price changes its direction.
Acceleration/Deceleration is used to generate early trading signals of forex trend reversals.
If AC changes direction then forex price direction will soon follow.
FX Technical Analysis & How to Generate Signals
Zeroline is the spot where the momentum is at balance with acceleration or deceleration.
If Acceleration/Deceleration is higher than Zero, then it's easier for the acceleration to continue in the upwards movement.
If Acceleration/Deceleration is lower than Zero, then it's easier for the deceleration to continue in the downwards movement.
The Zero point is not regarded as a buy or sell signal when it is crossed.
A buy or sell trade is generated when color of the AC changes from red to green.
Buy Trading Signal
When the current column changes from red to green this is interpreted as a buy.
When the current column is colored red, you can not buy.
When the indicator is higher than Zero and the current bar is green a buy trading signal is generated.
When the AC is lower than zero & the current bar is green a confirmation signal is required for a buy. 3 green bars is usually another confirmation.
Sell Forex Signal
When the current column changes from green to red this is analyzed as a sell.
When the current column is colored green, you can not sell.
When the indicator is lower than Zero & the current bar is red is a sell trading signal is generated.
When the AC is higher than zero and the current bar is red a confirmation signal is required for a sell. 3 green bars is usually another confirmation.
Technical Analysis in FX Trading
