What is Acceleration or Deceleration

Accelerator/Decelerator (AC) is an oscillator that measures activation or deactivation of the driving force on the market. It changes its direction before any changes in the direction of the price take place. This oscillator has much in common with Awesome Oscillator, but unlike AO, the crossing of the zero line is not a buy/sell signal.

Accelerator/Decelerator is mostly used to predict the change of the driving force on the market. When AC is at the zero line it means that the driving force is at balance with the acceleration. When AC crosses the zero line and goes up or down the only thing that should be traced is the change of the color of the bars.

Interpretation:

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 the Accelerator Decelerator Oscillator, when the current column is colored red, and you can not sell, when the current column is colored green.

Methods of use:

1. When the chart is above the zero line and there are two green bars, it is a signal to buy.
2. When the chart is below the zero line and there are two red bars, it is a signal to sell.