Accelerator Oscillator (AC) - Indicator for MetaTrader 4
Acceleration / deceleration (AC) indicator measures the acceleration and deceleration of the current driving force. This indicator will change direction before any change in the driving force, which, in turn, will change its direction before the price. If you realize that acceleration / deceleration is a signal that can be detected early, it gives you obvious advantages.
The zero line is basically the point where the driving force is in equilibrium with the acceleration. If the acceleration / deceleration is greater than zero, then it is generally easier for the acceleration to continue the upward movement (and vice versa in cases when it is below zero). Unlike "Аwesome Оscillator", it is not considered as a signal when the zero line is crossed. All you have to do to control the market and make decisions is to see the 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 red, and can not be sold, when the current column is green.
If you enter the market in the direction of the driving force (the indicator is greater than zero, when buying, or is less than zero, when selling), then you need only two green columns to buy (two red columns to sell) . If the force is directed against the open position (indicator below zero for purchase, or greater than zero for sale), a confirmation is required, therefore, an additional column is required. In this case, the indicator should display three red columns above the zero line for a short position and three green columns below the zero line for a long position.
Calculation
The histogram AC is the difference between the value of 5/34, the histogram of the force conduction and the simple moving average of 5 periods, taken from this histogram.
AO = SMA (median price, 5) -SMA (median price, 34)
AC = AO-SMA (AO, 5)
where:
SMA - Simple Mobile Media;
AO: Аwesome Оscillator.
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