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Forex Indicator MT4

Accelerator Oscillator(AC)

What is Accelerator Oscillator(AC) indicator, the instructions of Accelerator Oscillator(AC) and how to use the Accelerator Oscillator(AC) indicator, the calculation of Accelerator Oscillator(AC) and the Accelerator Oscillator(AC) indicator main parameters

Introduction

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.

Accelerator Oscillator(AC)

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:

 

Signals of Accelerator Oscillator(AC)

Unlike the Awesome Oscillator, if the Acceleration / Deceleration Oscillator (AC) crosses the zero line, then it is not a signal. However, we still never buy if a histogram bar is red and never sell if it is green.

 

Buy above the zero line / sell below the zero line

A buy above the zero line signal is generated when there are two consecutive green histogram bars (a green histogram bar is a bar whose high is higher than the preceding bar’s high):

The historgam is above the zero line. Place a Buy Stop one tick above the high of the price bar that corresponds to the second highest high (“c”).

A sell below the zero line signal is generated when there are two consecutive red histogram bars (a red histogram bar is the bar whose low is lower than the preceding bar’s low). The historgam is below the zero line. Place a Sell Stop one tick below the low of the price bar that corresponds to the second lowest low (“c”).

 

Buy below the zero line / sell above the zero line

If the histogram is below the zero line, a buy signal is generated when there are three consecutive green histogram bars. Place a Buy Stop one tick above the high of the price bar that corresponds to the third highest high (“d”).

If the histogram is above the zero line , a sell signal is generated when there are three consecutive red histogram bars:

Ac-Signals

Place a Sell Stop one tick below the low of the price bar that corresponds to the third lowest low on the histogram (“d”).

If histogram “b” or “c” bar crosses the zero line, then histogram “c” bar becomes a signal bar, and there is no need to wait for the “d” bar to occur.

  • No matter what signal is created you must ignore it until the first fractal buy or sell signal is triggered outside the Alligator’s mouth.
  • You should ignore signals that are not in the same direction as the first signal from fractal.
  • If Acceleration / Deceleration Oscillator generates a signal but the histogram changes its color before the pending order is executed, then the signal has to be ignored and the order has to be deleted.
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