Acceleration/Deceleration
Developed by Bill William
Acceleration/Deceleration measures acceleration & deceleration of the trend momentum - it is popularly used to analyze both stock markets and stock market movements.
This stock indicator changes direction before the stock trading price changes its direction.
The AC is used to generate early market signals of the trend reversals.
If AC changes direction then stock trading price direction will soon follow.
Technical Analysis & How to Generate Signals
The Zero-line is the point where the strength is at balance with the acceleration/deceleration.
If AC 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 stock signal when it is crossed.
A buy/sell position is derived & generated when colour of the AC changes from color red to green.
Buy Trade Signal
When the current column shifts from red to green this is interpreted as a buy signal.
When the current column is colour red, you can't buy.
When the indicator is higher than Zero & the current bar is green a buy stock trading signal is generated.
When the Acceleration/Deceleration (AC) is lower and lesser than zero & the current bar is green a confirmation trading signal is required for a buy trade. Three green bars is usually another confirmation.
Sell Trade Signal
When the current column shifts from green to red this is analyzed as a sell.
When the current column is colored green, you as a trader can not sell.
When the indicator is lesser than Zero & the current bar is red is a sell stock trading signal is generated.
When the AC is higher than zero and the current bar is red a confirmation trading signal is required for a sell. 3 green bars is usually another confirmation.
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