Accelerator Oscillator
Acceleration/Deceleration Technical Indicator (AC)
Section titled “Acceleration/Deceleration Technical Indicator (AC)”The AC indicator measures the acceleration and deceleration of the current driving force. It provides early warnings of changes in the driving force before they affect the price.
Understanding the Nought Line
Section titled “Understanding the Nought Line”The nought line represents the balance point between the driving force and acceleration. When the AC indicator is above the nought line, it indicates that the acceleration is favoring upward movement. Conversely, when it is below the nought line, it suggests a preference for downward movement.
Interpreting Color Changes
Section titled “Interpreting Color Changes”The color of the AC indicator columns is crucial for making trading decisions. A red column indicates that buying is not recommended, while a green column suggests that selling is not advisable.
Entering the Market
Section titled “Entering the Market”To enter the market in the direction of the driving force, look for two consecutive green columns to buy or two consecutive red columns to sell. If the driving force is against your intended position, you’ll need an additional column for confirmation.
AC Bar Chart
Section titled “AC Bar Chart”The AC bar chart is calculated as the difference between the 5/34 driving force bar chart and the 5-period simple moving average taken from that bar chart.