Acceleration/Deceleration

Created by Bill Williams

Acceleration/Deceleration measures acceleration and deceleration of the metals trend momentum - it is popularly used to analyze both metals markets & metals market movements.

This metals indicator changes direction before the metals price changes its direction.

Acceleration/Deceleration is used to generate early signals of metals trend reversals.

If AC changes direction then metals price direction will soon follow.

Metal Analysis & How to Generate Trading Signals

Zeroline is the spot where the momentum is at balance with the acceleration or deceleration.

If Acceleration/Deceleration is higher than Zero, then it is easier for the acceleration to continue in the upward movement.

If Acceleration/Deceleration is lower than Zero, then it is easier for the deceleration to continue in the downward movement.

The Zero point is not regarded as a buy or sell metals signal when it is crossed.

A buy or sell metals trade is generated when the color of the AC changes from red to green.

Buy Trading Signal

When the current column changes from red to green this is analyzed as a buy.

When the current column is colored red, you can not buy.

When the technical indicator is higher than Zero and the current bar is green a buy metals trade signal is generated.

When the AC is lower than zero and the current bar is green a confirmation signal is required for a buy. Three green bars is usually another confirmation.

Sell Trading Signal

When the current column changes from green to red this is analyzed as a sell.

When the current column is colored green, you can not sell.

When the technical indicator is lower than Zero and the current bar is red is a sell metals trade signal is generated.

When the AC is higher than zero & the current bar is red a confirmation signal is required for a sell. Three green bars is usually another confirmation.

Technical Analysis in Metal Trading