Acceleration Oscillator (AC) indicator [Oscillator]
Acceleration/Deceleration indicator (Acceleration Oscillator, abbreviated AC) - as it is easy to guess from the name, the technical indicator of the oscillator type, which displays to the trader the processes of acceleration and deceleration of the current driving force of the instrument.
It is assumed that to change the direction of the price chart requires a change in the driving force of the market, which must first slow its current movement, and then give a new impulse in the opposite direction. Acceleration Oscillator indicator was developed by Bill Williams to measure the direction and activity of a given market driving force, which in turn changes the direction of price.
Acceleration Oscillator indicator is standard for MetaTrader 4 trading terminal.
The zero line of the Acceleration Oscillator indicator
In contrast to of the Awesome Oscillator indicator, нулевая линия Acceleration Oscillator — это место, в котором движущая сила находится в балансе с ускорением, поэтому использовать ее в качестве сигнальной не рекомендуется. Однако если индикатор AC находится выше нуля, ускорению проще продолжить восходящее движение, и наоборот.
Forex Trading Signals AC Indicator
Кроме того, расположение и величина баров AC также может не заботить трейдера. Главное, за чем следует наблюдать, — это цвет индикатора.
Buy signal occurs if the color of the indicator is green, and if it is below zero, then buy on the fourth consecutive green bar, if higher - on the third.
For purchase transactions it is necessary that the Awesome Oscillator is colored red. Sell on the fourth consecutive red bar when the indicator is above zero, and on the third when it is below zero.
Formula for calculating the AC indicator
MEDIAN PRICE = (HIGH + LOW) / 2,
AO = SMA (MEDIAN PRICE, 5) - SMA (MEDIAN PRICE, 34),
AC = AO - SMA (AO, 5),
Where:
— MEDIAN PRICE — медианная цена;
— HIGH — максимальная цена бара;
— LOW — минимальная цена бара;
— SMA — простое скользящее среднее;
— AO — индикатор Awesome Oscillator.