AC Oil Technical Analysis and Acceleration/Deceleration Oil Trading Signals

Developed by Bill Williams

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

This oil indicator changes direction before the crude crude oil price changes its direction.

The Acceleration/Deceleration is used to generate early signals of oil trend reversals.

If AC changes direction then crude crude oil price direction will soon follow.

Oil Technical Analysis & How to Generate Crude Oil Trading 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 upwards 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 oil signal when it is crossed.

a buy or sell oil trade is generated when color of the AC changes from red to green.

Buy Oil 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't buy.

When the indicator is higher than Zero and the current bar is green a buy crude oil trade signal is generated.

When the AC is lower than zero & the current bar is green a confirmation signal is required for a buy. Three green bars is usually another confirmation.

Sell Crude Oil Trading Signal

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

When the current column is colored green, you can't sell.

When the indicator is lower than Zero & the current bar is red is a sell crude oil trade signal is generated.

When the AC is higher than zero & the current bar is red a confirmation signal is required for a sell. Three green bars is usually another confirmation.

Technical Analysis in Oil Trading