Acceleration/Deceleration
Created 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 signals of trend reversals.
If AC changes direction then xauusd price direction will soon follow.
Trading Analysis and How to Generate Signals
The Zeroline is the spot where the momentum is at balance with acceleration or 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 generated when colour of the AC changes from 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 cannot buy.
When the indicator is higher than Zero and the current bar is green a buy signal gets generated.
When the AC is lower than zero and the current bar is green a confirmation signal is required for a buy. 3 green bars is also another confirmation.
Sell Signal
When the current column changes from green to red this is analyzed as a sell.
When the current column is colored green, you cannot sell.
When the indicator is lower than Zero & the current bar is red is a sell signal gets generated.
When the AC is higher than zero & the current bar is red a confirmation signal is required for a sell. 3 green bars is also another confirmation.
Technical Analysis in XAUUSD Trading