Acceleration/Deceleration

Developed by Bill Williams

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

This technical indicator changes direction before the crude oil price changes its direction.

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

If AC changes direction then crude oil price direction will soon follow.

Crude Oil Trading Technical Analysis & How to Generate Trading Signals

Zeroline is the spot where the momentum is at balance with 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 oil signal when it is crossed.

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

Buy Trading 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 and the current bar is green a buy oil 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 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 indicator is lower than Zero & the current bar is red is a sell oil 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 Crude Oil Trading