Indicator Acceleration / Deceleration was designed by Bill Williams. The objective of this indicator is to measure the rate of acceleration and deceleration rates.
The indicator measures the acceleration of prices, depending on its location relative to the average baseline. Indicator creator Bill Williams said that with the help of this indicator can well predict further movement chart. This statement is quite logical, since before the strong motion, the price slows down, and after beginning to move actively.
All the indicators that have been created by Bill Williams linked logically, some even technically. And the LED associated with the Awesome Oscillator (AO) is not only logically, but also technically. If you look at the formula for calculating (shown in photo), it has only one action - the difference. Value indicator Acceleration / Deceleration (AC) is: the current value of the indicator values take AO Simple Moving Average 5-period of the indicator AO.
This technical indicator refers to the type of oscillators, the schedule of which is built in the form of a histogram. In order to have a better and clearer to work with speed indicator bars are green, and the bars have a slow red. In the default setting, you can choose the color and thickness of the bars.
When you configure the period Indicator Bill Williams recommended that the period of 5 and 34, but they were not effective, and better fit the data periods independently.
Applying the indicator Acceleration / Deceleration
It should be immediately noted that all the signals sent by the LED are only confirming the character.
If the indicator is below zero, and he went down heavily, then signals for purchase is the appearance of three consecutive growing bars that indicate the acceleration of the price chart. If after that a red bar, the signal is considered refuted, and is close the current transaction.
So as not to list all the signals that are, in fact, have one and tuzhu system we generalize them. If, after a trend of bars (red or green) appears sharp increase or decrease in a new trend, it is a signal to open an order.
I would recommend that traders do not trade on this indicator, and use it only as a measure of the speed of the market, so I think its use will be much more efficient and will save from false signals, and subsequently retain your deposit.