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 signals of trend reversals.
If AC changes direction then stock trading price direction will soon follow.
Technical Analysis & How to Generate Signals
The Zeroline is the spot where the momentum is at balance with acceleration or 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 trade position is generated when colour of the AC changes from red to green.
Buy Trading Signal
When the current column shifts from red to green this is interpreted as a buy.
When the current column is colour red, you cannot buy.
When the indicator is higher than Zero & the current bar is green a buy stock trading signal is generated.
When the AC is lower than zero and the current bar is green a confirmation signal is required for a buy. 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 cannot sell.
When the indicator is lower 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 signal is required for a sell. 3 green bars is usually another confirmation.
Technical Analysis in Indices Trading
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