Acceleration/Deceleration Technical Indicator (AC)
Acceleration/Deceleration Technical Indicator (AC)
measures acceleration and deceleration of the current driving force.
This indicator will change direction before any changes in the driving
force, which, it its turn, will change its direction before the price.
If you realize that Acceleration/Deceleration is a signal of an earlier
warning, it gives you evident advantages.
The nought line is basically the spot where the
driving force is at balance with the acceleration. If
Acceleration/Deceleration is higher than nought, then it is usually
easier for the acceleration to continue the upward movement (and vice
versa in cases when it is below nought). Unlike in case with Awesome Oscillator,
it is not regarded as a signal when the nought line is crossed. The
only thing that needs to be done to control the market and make
decisions is to watch for changes in color. To save yourself serious
reflections, you must remember: you can not buy with the help of
Acceleration/Deceleration, when the current column is colored red, and
you can not sell, when the current column is colored green.
If you enter the market in the direction of the
driving force (the indicator is higher than nought, when buying, or it
is lower than nought, when selling), then you need only two green
columns to buy (two red columns to sell). If the driving force is
directed against the position to be opened (indicator below nought for
buying, or higher than nought for selling), a confirmation is needed,
hence, an additional column is required. In this case the indicator is
to show three red columns over the nought line for a short position and
three green columns below the nought line for a long position.
Calculation:
AC bar chart is the difference between the value of 5/34 of the driving force bar chart and 5-period simple moving average, taken from that bar chart.
AO = SMA(median price, 5)-SMA(median price, 34)
AC = AO-SMA(AO, 5)
Where:
SMA — Simple Moving Average;
AO — Awesome Oscillator.
Source Code
Full MQL4 source of Accelerator/Decelerator Oscillator is available in the Code Base: Accelerator/Decelerator Oscillator
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Technical Indicators
