Market rates changes my be influenced by acceleration and deceleration. The powers influencing market changes are slowing down till they stop and than they start moving in the opposite direction. That’s the moment when the rates are changing.
Technical indicator acceleration/deceleration oscillator is used to denote acceleration or deceleration. It’s denoting that a rates move direction is about to change and the prices will be changing as well.
Once an indicator is located higher then the zero level, acceleration is moving up, once it’s located below zero – deceleration can be seen. Crossing the zero level itself is an indicator. If you are monitoring the market with the AC indicator, it’s necessary to watch it’s color. It’s not recommended to sell once the color is green and it’s better not to buy if the indicator is red.
In order to enter the market in time when the direction is right you need two green indicators above zero and two red ones - above. In order to enter the market in when the market is moving the wrong direction you need three red indicators above zero and three red ones below zero level for buying.
