AC Stock Indices Technical Analysis and Acceleration/Deceleration Stock Indices Signals
Developed by Bill Williams
Acceleration/Deceleration measures acceleration and deceleration of the stock indices trend momentum - it is popularly used to analyze both stock markets and stock index trading market movements.
This indices technical indicator changes direction before the stock index price changes its direction.
The Acceleration/Deceleration is used to generate early signals of stock indices trend reversals.
If AC changes direction then stock index price direction will soon follow.
Stock Indices Technical Analysis and Generating Stock Indices Signals
The Zero line is the spot where the momentum is at balance with the 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 stock indices signal when it is crossed.
a buy or sell stock indices trade is generated when the color of the AC changes from red to green.
Buy Stock Indices Signal
When the current column changes from red to green this is interpreted as a buy.
When the current column is colored red, you cannot buy.
When the indicator is higher than Zero and the current bar is green a buy stock indices 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 is usually another confirmation.
Sell Stock Indices Signal
When the current column changes from green to red this is interpreted as a sell.
When the current column is colored green, you cannot sell.
When the indicator is lower than Zero and the current bar is red is a sell stock indices 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
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