Acceleration/Deceleration

Created by Bill William

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

This indicator changes direction before the price changes its direction.

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

If AC changes direction then price direction will soon follow.

Stocks Analysis and How to Generate Signals

The 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 upwards 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 signal when it is crossed.

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

Buy 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 trade signal is generated.

When the AC is lower than zero & the current bar is green a confirmation signal is required for a buy. 3 green bars is usually 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 can not sell.

When the technical indicator is lower than Zero & the current bar is red is a sell trade signal is 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 usually another confirmation.

Technical Analysis in Stocks Trading