Acceleration/Deceleration
Developed by Bill William
Acceleration/Deceleration measures acceleration and deceleration of the trend momentum - it is popularly used to analyze both stocks markets & market movements.
This indicator changes direction before the price changes its direction.
The AC is used to generate early market signals of the trend reversals.
If AC changes direction then xauusd gold price direction will soon follow.
Analysis and How to Generate Signals
The Zero line is the place where the power is at balance with acceleration/deceleration.
If AC is higher than Zero, then it's easier for the acceleration to continue in the upward movement.
If Acceleration Deceleration is lower than Zero, then it's easier for the deceleration to continue in the downward movement.
The Zero point is not regarded as a buy or sell signal when it's crossed.
A buy or sell trade gets derived and generated when colour of the AC changes from color red to green.
Buy Gold Signal
When the current column changes from red to green this is analyzed as a buy.
When the current column is colored red, you as a trader can not buy.
When the indicator is higher than Zero and the current bar is green a buy signal gets generated.
When the AC is lower and lesser than zero and the current bar is green a confirmation trading signal is required for a buy trade. 3 green bars also is another confirmation.
Sell Signal
When the current column shifts from green to red this is analyzed as a sell.
When the current column is colour green, you can't sell.
When the indicator is lower and lesser than Zero & the current bar is red is a sell signal gets generated.
When the AC is higher than zero and the current bar is red a confirmation trading signal is required for a sell trade. three green bars is also another confirmation.
Technical Analysis in XAU/USD Trading
Learn More Topics and Tutorials:
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