индикатор акселератор на форекс / How to Use The Accelerator Oscillator For Forex Trading

Индикатор Акселератор На Форекс

индикатор акселератор на форекс

How to Use The Accelerator Oscillator For Forex Trading

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  • Accelerator Oscillator

    This lesson will cover the following

    • Explanation and calculation
    • How to interpret this indicator
    • Trading signals, generated by the indicator

    Developed by Bill Williams as a development component of the Awesome Oscillator, it measures the difference between the Awesome Oscillator and the 5-period moving average. This indicator reflects the pace at which the Awesome Oscillator changes, while this can be used in order to detect trend reversals before the Awesome Oscillator indicates such.

    In case the Accelerator Oscillator moves above the zero line, this is considered as a signal that acceleration to the upside will continue. In case the Accelerator Oscillator moves below the zero line, this is considered as a signal that acceleration to the downside will continue.

    Generally, signals of a price surge are confirmed by two green bars following one another and the Accelerator Oscillator being above the centerline. Signals of a price decline are confirmed by two red bars following one another and the Accelerator Oscillator being below the centerline.

    There is another way to look at this indicator &#; to search for signals when the Accelerator Oscillator is on the opposite side of the centerline. For instance, a trader should look to go long, when the Accelerator Oscillator is below the centerline and go short, when the Accelerator Oscillator is above the centerline. In both cases, however, further confirmation is required &#; at least one more bar. Therefore, when the indicator is below the zero line and the trader intends to go long, at least three green bars need to be present below the zero line. When the indicator is above the zero line and the trader intends to go short, at least three red bars need to be present above the zero line.

    Accelerator Oscillator

    A Beginner's Guide to Bill Williams Accelerator Oscillator Indicator in Forex

    If you want a tool that will help you identify what momentum is doing when you are trading Forex, the Bill Williams Accelerator Oscillator may be of use to you.

    This post will explain what this indicator is, how you can add it to your charts, and how you can use it as part of your Forex trading strategies.

    What is the Bill Williams Accelerator Oscillator indicator?

    The Bill Williams Accelerator Oscillator, often known simply as the Accelerator Oscillator, is an indicator that measures momentum.

    It is closely related to the Awesome Oscillator, also developed by Bill Williams.

    How is the Bill Williams Accelerator Oscillator indicator calculated?

    The easiest way to understand the Accelerator Oscillator is to take a look at how it is calculated. AO below stands for Awesome Oscillator. SMA is short for a simple moving average.

    Naturally, you also will want to know how the Awesome Oscillator is calculated. Here is the formula for the AO:

    You do not need to do all of this math yourself. You can simply tell MetaTrader 4 (or whatever platform you are using) to plot the Accelerator Oscillator on your chart. It will take care of the hard work.

    Key point: The Awesome Oscillator is used to plot the Accelerator Oscillator.

    What does the Bill Williams Accelerator Oscillator indicator show us?

    Now you know the math that is used when plotting the Accelerator Oscillator. But what is it actually showing you on your charts?

    Williams explained the meaning of the Accelerator Oscillator by saying, "the zero line is the place where the momentum is balanced with the acceleration."

    Here is how to interpret the Accelerator Oscillator:

    • When you see the oscillator above the zero line, conditions are bullish. Acceleration can increase with ease. If you are thinking about buying, make sure you do not see red bars.
    • When you see the oscillator below the zero line, conditions are bearish. Deceleration can increase with ease. If you are considering selling, make sure you do not see green bars.

    Key point: The Accelerator Oscillator helps you visualize the changes in momentum. Using the clues it gives you, you can better understand the bearish or bullish context of the market when you are planning your trades.

    How to plot the Bill Williams Accelerator Oscillator indicator on your charts

    Adding the Bill Williams Accelerator Oscillator to your MetaTrader 4 charts is a breeze. Here is how to do it:

    1. Navigate in the top menu to Insert→Indicators→Bill Williams→Accelerator Oscillator.
    2. In the box that comes up, you can select your preferred colors. By default, they are green and red.
    3. Click on OK to add the indicator to your chart. You will see the oscillator at the bottom in its own area below price.

    Key point: In just a couple of clicks, you can add the Accelerator Oscillator to your Forex charts in MT4.

    How to use the Bill Williams Accelerator Oscillator indicator while you trade

    There are a few ways you can approach using the Accelerator Oscillator. Note that it was designed to be used primarily in conjunction with other indicators, not on its own.

    Below, you can see a straightforward example of a trade using the Accelerator Oscillator. On the chart, we circled a bullish pinbar, a price pattern that suggests price is about to rise.

    If you look below it, you will see the oscillator is above zero, and most of the bars are green. This confirms bullish momentum, which lends favorable context to our bullish pinbar. Whether you entered right away or waited a little bit, you would have caught a significant move upward here.

    A bullish pinbar appears; Accelerator Oscillator above zero.

    Here is a chart where you can see consolidation forming at a swing high. Going off of the price action alone, you might have entered this trade immediately after the second inside bar.

    By this point, the bars in the oscillator are dropping swiftly toward the zero line, and they are red, suggesting they will soon cross over—which they then do. If you wanted, you could even wait to enter until after you see the first red bar under the zero line. You would still catch part of the move.

    A consolidation forms; Accelerator Oscillator drops quickly below zero.

    Interestingly enough, you can also use the oscillator to help you identify setups you might not want to trade.

    In the chart below, there is a well-formed pinbar that suggests price will drop. To be fair, it does—but only to form another pinbar, this time a bullish one.

    The oscillator is below the zero line when the original pinbar forms, but look at it closely. The bars are green, and rising. That does not bode well for bearish momentum. Indeed, the oscillator illustrates the market context well, since we are looking at whipsaws and consolidation, as it turns out, and not a bearish move.

    A bearish pinbar appears, but the Accelerator Oscillator is green and rising.

    Price does eventually drop down, but it takes a number of bars before it happens. With loose enough stops, if you got in the trade at the original bearish pinbar, you could wait this out—but someone with tighter stops might have been stopped out.

    In short, this wasn't necessarily a bad trade, but it was a dodgy one, and the oscillator provided great context on that fact.

    Key point: The Accelerator Oscillator gives you context that you can use in combination with price patterns or other indicators to decide when to make a trade.

    General tips for using the Bill Williams Accelerator Oscillator indicator

    • Use other indicators or price action. It is best to use this oscillator to confirm your setups, not generate them entirely.
    • Consider using the Alligator indicator. This was the indicator that Bill Williams himself favored using in conjunction with the Accelerator Oscillator.
    • Test. Just as you would with any other trading strategy, you should backtest and demo test any method you are thinking about using that incorporates this indicator.

    Key point: The best practices above can help you get the most out of the Accelerator Oscillator.

    Conclusion

    The Bill Williams Accelerator Oscillator contextualizes your setups: knowing whether bullish or bearish momentum is likely to be on your side can be extremely helpful when you are trying to figure out whether to pull the trigger on a trade.

    Try using the Accelerator Oscillator to analyze momentum and place context around your trade setups. The insights it offers may be just what you need to decide when to trade and when to hold off.

    If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.

    Accelerator Decelerator: how to control the player’s pressure at the market effectively

    The Acceleration Deceleration indicator is a logical continuation of the Awesome Oscillator of Bill Williams (AO) and implements the idea that before the change of the direction the price changes in the last turn.

    Before a turn, the price gradually reduces the dynamics on the current trend, as a result, the trader needs to estimate its acceleration («+» or «-»), which at the time of the actual turn has to be equal to zero.

    Logic and purpose

    Accelerator Decelerator (AC) advances the actual dynamics:

    before a turn, the AC histogram is developed (is slowed down) first as the price stops updating the extreme values, before strengthening of a trend the histogram begins to grow.

    The central line of the indicator – the level at which acceleration of the price is balanced with the driving force of the market.

    According to the author's strategy of Profitunity:


      If the AC histogram is higher than the zero line (positive) and:

    • grows – the bull trend amplifies (buyers stronger, it is easier for the price to go up);
    • decreases – the bull trend weakens, the turn or the flat is possible;
    • if the AC histogram is lower than the zero line (negative) and:
    • falls – the bear trend «accelerates» (sellers prevail, it is simpler to price to decrease);
    • raises – the descending direction weakens, we wait for a turn or flat.

    Calculation procedure

    The standard Accelerator Decelerator indicator uses a concept of the average (median price) price of the current bar:

    (High+Low)/2

    In some sources for calculation the closing price is included in the calculation of an average:

    (High+Low+Close)/3

    It is supposed that such price moves more smoothly than the average, but, nevertheless, reflects similar dynamics. The concept of the median price is used much more often.

    After determination of the base settlement price (median or typical), the exponential sliding average with the period 5 is calculated − EMA(5), or «fast» average, and similar «slow» average EMA(34). The difference between values of these MA gives data for creation of the Awesome Oscillator indicator.

    Further, to enhance its advancing properties, it is necessary to calculate a difference between the value of the AO indicator’s histogram and its moving average of SMA(5) – only then we obtain necessary data for Accelerator Decelerator.

    The calculation in the form of formulas:

    MedianPrice=(High+Low)/2, (for TypicalPrice = (High+Low+Close)/3);

    AO=SMA (MedianPrice; 5) −SMA (MedianPrice; 34),

    AC=AO−SMA(AO; 5).

    Parameters and control

    This technical indicator of oscillator type is a part of all popular trading platforms and is displayed as the color histogram in an additional window. There are non-standard options for the AC placing the histogram directly on the price schedule.

    Most often traditional red-green scale is applied to the histogram, but the trader can independently choose a color scheme. The zero line is displaced in dynamics depending on what trend prevails in the market.


    Williams recommends to use parameters of the indicator 5 and 34, but here’s the problem:

    this system was developed more than 20 years ago and for the futures and stock market with stable volatility.

    So modern traders are recommended to select parameters individually under certain assets, time frames, the periods of activity and other trade conditions, otherwise it is necessary to fight against the mass of false signals.


    Parameters and general view of Accelerator Decelerator

    Standard version of the indicator

    The first parameter of the indicator isn't recommended to change as it reflects the wave structure of the calculation and «is tied» to standard Elliot`s wave model (5 main and 2 auxiliary waves) and also to the model of a Mandelbrot`s fractal.

    The second parameter and the type of calculation of average are corrected usually, for example, in practice the parameters (5; 20; 3; EMA) are chosen for actively volatile tools.

    Trade signals of the indicator

    For making a decision on the direction of an entry in the market it is necessary to track the change of color of the histogram:

    • if the current bar is red – we do not buy, we open only sell or we do not trade at all;
    • if the current bar is green – we do not sell, only purchases are possible or we are out of the market.

    If we open the transaction in the direction of the driving force’s strengthening, that is on the positive histogram – for purchase, on the negative – for sell, then there are enough two bars of the appropriate color.

    For a long position: 1 red and 2 green serial bars with a higher max shall be created on the positive AC histogram. We put the BuyStop order by points higher than a maximum of a signal bar.

    The scheme of purchase on Accelerator Decelerator

    The strong signal for purchase

    For a short position: the signal arises on normal logic – the direction changes from top to down − 1 green and 2 red bars with lower min appears sequentially on the negative histogram. We put the SellStop order by points below than a minimum of a signal candle.

    The sell scheme on Accelerator Decelerator

    The strong signal for sell

    To make the decision on the transaction against the direction of an acceleration − purchase on the histogram is below zero or sell on the histogram above the line of balance – needs an additional bar as confirmation.

    For a long position: 1 red and 3 green serial bars with higher min shall be on the negative histogram. We put the BuyStop order by points higher than a maximum of a signal candle.

    The weak scheme of purchase on Accelerator Decelerator

    Weaker signal for purchase

    At the same time if one of the first 2 green bars punches the zero line, then it is already possible to buy on the third bar.

    For a short position: the appearance of 1 green and two red bars which sequentially decrease on the positive histogram is necessary. SellStop is placed by points lower than a low price of a signal bar.

    The weak scheme of sell on Accelerator Decelerator

    Weaker signal for sell

    If one of first two bars cross the zero line, then it is possible to open the transaction for sale already on the last red bar.


    The intersection of the zero line by the Accelerator Decelerator histogram is not a trade signal!

    The fact of the balance line breakthrough influences only necessary number of bars, depending on the position of the histogram of the indicator in relation to the zero line.


    Minimum conditions for an entrance on Accelerator Decelerator

    The number of bars for opening of the transaction

    On the AC indicator, a divergence signal, traditional for oscillators, with the price (the price forms a new extremum, and the schedule of the indicator moves in the opposite direction) appears much less often.

    It means that the current direction of a trend weakens (is slowed down), that is − at such situation will be logical to open the transaction towards the breakthrough of zero level. In that case, we put Stop Loss behind the next local extremum

    Several practical remarks

    If the Accelerator Decelerator indicator shows a standard trade signal, but before execution of the postponed orders (exposed according to rules!), the histogram changes color − the signal is considered incorrect and is canceled.

    It is possible to leave trade orders in action if they are rather far from a point of a turn of the histogram and the general direction of a trend remains relevant.

    It is possible to apply AC as the indicator of flat markets − during the periods of low volatility its histogram fluctuates in a zone of the zero line with the minimum amplitude.


    The indicator is effective in combination with trend tools, for example, the Moving Averages or Bollinger Bands, and, naturally, it can be combined with other tools of Williams (see the Chaos theory).

    We have highlighted additionally the trading strategy based on Awesome Oscillator and the Accelerator Decelerator, check here how these two tools can be combined effectively.

    In a set of Accelerator Decelerator, the first generates a trade signal, but it is not recommended to use it as the independent tool, only as the complementary filter.


    If to apply the AC histogram with fractals, then it is necessary to consider that its signals have only the confirming character, and the contact of the first fractal will be the main signal − only after that orders can be exposed according to AC indicator signals.

    Here’s how it goes:

    Accelerator Decelerator as strategy element

    The AC indicator in the strategy of Profitunity

    Rather difficult mathematics of the Accelerator Decelerator indicator allows smoothing speculative throws of the price, for example, on news, that allows using it on any assets even in the unstable market. Its signals can be considered reliable only for medium-term transactions on the time frames from H1 above.

    Try It Yourself

    After all the sides of the indicator were revealed, it is right the time for you to try either it will become your tool #1 for trading.

    In order to try the indicator performance alone or in the combination with other ones, you can use Forex Tester with the historical data that comes along with the program.

    Simply download Forex Tester for free. In addition, you will receive 23 years of free historical data (easily downloadable straight from the software).



    What is your favorite indicator?



    Accelerator Oscillator

    The Accelerator Oscillator, also known as the Acceleration/Deceleration Indicator (AC), is an indicator for the use of technical analysis in financial trading.

    It was developed by American technical trader, Bill Williams, and measures the acceleration and deceleration of the current driving force.

    This is represented by a series of red or green bars, thus can provide an early warning to potential trend changes.

    Bill Williams developed the Accelerator Oscillator alongside his Awesome Oscillator.

    Specifically, the Accelerator Oscillator is the difference between the Awesome Oscillator and moving average of a period of 5.

    Essentially, the Accelerator tells us the rate of change of the Awesome. The AC possesses just a single line (zero line), and unlike a lot of the other oscillators which aim to catch potential reversals, the AC does not have any overbought or oversold levels.

    Thus, if the green bars move from below the zero line to above the zero line, there’s a higher chance that bullish acceleration will continue, and if the red bars move from above the zero line to below the zero line, there’s a higher chance that bearish acceleration will continue.

    It can also be a useful indicator to keep a trader out of the market; if the AC histogram is red, longs should not be considered, and if the histogram is green, shorts should not be considered.

    How to Trade Accelerator Oscillator

    The default view in trading the Accelerator Oscillator is pretty simple. Bill Williams suggests that if you’re looking to enter into a bullish trend, look for two consecutive green bars above the zero line.

    If you’re looking to enter into a bearish trend, look for two consecutive red bars below the zero line.

    It can also be used to enter at turning point, i.e. before the AC reaches the middle line, and in such a case, a trader is to look for three consecutive green bars below the zero line if seeking a bullish reversal.

    Likewise, three consecutive red bars above the zero line if seeking a bearish reversal. A simple adjustment of the rules gives the trader an option to trade either trends or reversals.

    Accelerator indicator

    The accelerator (AC) is an indicator that reveals the driving force behind movements the price of an asset.

    The AC indicator helps you identify reversals – where the price of an asset changes direction and moves from an uptrend to a downtrend or vice versa.

     By measuring how many buyers and sellers there are in a market, it helps you form a view on the future direction of a price and – crucially – how fast that movement may be. The AC indicator works best in trending markets.

    Green bars for bulls, red bars for bears

    The indicator appears in a box directly underneath the regular price chart. It has a zero line running horizontally along the middle with green/red bars above or below it.

    The image below shows how the accelerator indicator appears on a chart:

    The accelerator indicator's zero line marks the point where the number of traders buying and selling an asset are equal.

    Reading the indicator to find the driving force

    Green bars indicate a bullish market, where buyers outnumber sellers and prices are rising. The appearance of a green bar above the zero line gives you a buy signal. The taller a green bar is, the more buyers there are in the market and the stronger the driving force behind the rising price.

    Green bars indicate a bullish market, where buyers outnumber sellers and prices are rising. Red bars indicate a bearish market, where sellers outnumber buyers and prices are falling.

    Red bars indicate a bearish market, where sellers outnumber buyers and prices are falling. The appearance of a red bar below the zero line gives you a sell signal. The lower a red bar is, the more sellers there are in the market and the stronger the driving force behind the declining price.

    Look for reversals

    The accelerator is a useful signal of market sentiment and can help you identify reversals, or changes in direction, of a price.

    When the colour of the indicator's bars changes from red to green, for example, this can mean a downtrend is due to change to an uptrend, with the number of buyers increasing and prices starting to rebound upwards.

    The image below shows the accelerator indicator providing a buy signal:

    1. Green shaded area shows that the bars have turned from red to green indicating a reversal to the upside.

    When the colour of the indicator's bars changes from green to red, this can mean an uptrend is due to reverse course, with more sellers entering the market and prices starting to fall.

    The image below shows the accelerator indicator providing a sell signal:

    1. The shaded area shows the green bars turning to red, indicating a possible reversal to the downside.

    Wait for confirmation

    Before you place a trade based on the accelerator indicator's signals, it is a good idea to wait for at least two bars to form in any one colour. This will help confirm that a new trend is indeed forming.

    For example, if you are looking for a buy signal, wait for at least two green bars to form above the zero line before placing a trade. If you are looking for a sell signal, wait for at least two red bars to form below zero.

    Summary

    In this lesson, you have learned

    • … the accelerator (AC) is an oscillator indicator that reveals the driving force behind price movements.
    • … the AC indicator helps you identify reversals – where the price of an asset changes direction and moves from an uptrend to a downtrend or vice versa.
    • … the accelerator's zero line runs horizontally along the middle of the chart and marks the point where the number of traders buying and selling an asset are equal.
    • … green bars indicate a bullish market, where buyers outnumber sellers and prices are rising.
    • … the appearance of a green bar above the zero line provides a buy signal – the taller the green bar, the stronger the driving force behind price rises.
    • … red bars indicate a bearish market, where sellers outnumber buyers and prices are rising.
    • … the appearance of a red bar below the zero line provides a sell signal – the lower the red bar, the stronger the driving force behind price declines.
    • … traders usually wait for at least two bars to form in any one colour – this helps confirm that a new trend is forming.

    nest...

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