Accelerator Oscillator
Introduction
Section titled “Introduction”Price is the latest element to change. Prior to price changes, the market driving force changes its direction, the driving force acceleration must slow down and reach nought. After that it starts accelerating in the opposite direction until price starts changing its direction.
Acceleration/Deceleration Technical Indicator (AC)
Section titled “Acceleration/Deceleration Technical Indicator (AC)”AC measures acceleration and deceleration of the current driving force. This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price. If you realize that AC is a signal of an earlier warning, it gives you evident advantages.
The Nought Line
Section titled “The Nought Line”The nought line is basically the spot where the driving force is at balance with the acceleration. If AC is higher than nought, then it is usually easier for the acceleration to continue the upward movement (and vice versa in cases when it is below nought). Unlike in case with Awesome Oscillator, it is not regarded as a signal when the nought line is crossed.
Using the Indicator
Section titled “Using the Indicator”To control the market and make decisions, you need to watch for changes in color. Do not buy when the current column is colored red, and do not sell when the current column is colored green.
Entering the Market
Section titled “Entering the Market”If you enter the market in the direction of the driving force (the indicator is higher than nought for buying, or lower than nought for selling), then you need only two green columns to buy (two red columns to sell). If the driving force is directed against the position to be opened, a confirmation is needed. In this case, an additional column is required. The indicator should show three red columns over the nought line for a short position and three green columns below the nought line for a long position.