Acceleration/Deceleration AC Technical Indicator Technical Analysis Signals
Developed by Bill Williams
Acceleration/Deceleration measures acceleration & deceleration of the trend momentum - it is popularly used to analyze both stock markets and forex market movements.
This indicator changes direction before the price changes its direction.
Acceleration/Deceleration is used to generate early signals of trend reversals.
If AC changes direction then price direction will soon follow.
Forex Trading Technical Analysis & How to Generate 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 upwards movement.
If Acceleration/Deceleration is lower than Zero, then it is 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 analyzed as a buy.
When the current column is colored red, you can't buy.
When the technical indicator is higher than Zero & 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 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't sell.
When the technical indicator is lower than Zero & the current bar is red is a sell trading signal is generated.
When the AC is higher than zero & 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
