Acceleration/Deceleration

Developed by Bill Williams

Acceleration/Deceleration measures acceleration and deceleration of the energies trend momentum - it is popularly used to analyze both energies markets & energies trading market movements.

This energies indicator changes direction before the energies price changes its direction.

Acceleration/Deceleration is used to generate early trading signals of energies trend reversals.

If AC changes direction then energies price direction will soon follow.

Energies Technical Analysis and Generating Trading Signals

Zeroline 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 signal when it is crossed.

A buy or sell energies trade is generated when the 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 cannot buy.

When the technical indicator is higher than Zero and the current bar is green a buy energies trade 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 Trading Signal

When the current column changes from green to red this is analyzed as a sell.

When the current column is colored green, you cannot sell.

When the technical indicator is lower than Zero and the current bar is red is a sell energies 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. 3 green bars is usually another confirmation.

Technical Analysis in Energy Trading