Trade Forex Trading

AC Stock Indices Analysis and Acceleration/Deceleration Signals

Developed by Bill Williams

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

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

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

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

AC Technical Indicator - AC Indicator Analysis

Indices Analysis and How to Generate Trade Signals

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

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

If Acceleration/Deceleration is lower than Zero, then it's easier for the deceleration to continue in the downwards 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.

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Buy Signal

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

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

When the indicator is higher than Zero & the current bar is green a buy stock 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.

Acceleration/Deceleration Buy Signal - AC Stock Indices Indicator Analysis

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 indicator is lower than Zero & the current bar is red is a sell stock trade signal is generated.

When the AC is higher than zero and the current bar is red a confirmation signal is required for a sell. 3 green bars is usually another confirmation.

Acceleration/Deceleration Sell Signal - AC Indicator Analysis

Analysis in Stock Indices Trading