AC Indicator - Oscillator Throttle: Guide Part 27

The Accelerating Oscillator is an indicator that measures the acceleration or deceleration of the current driving force of the market. The start of the Accelerating Oscillator performance is based on the assumption of its author Bill Williams that prior to the change of direction of the cost shift, the stimulus of its change must fall.

How to use the accelerator oscillator

The accelerator oscillator is an indicator that fluctuates near a mean degree of 0.00 (zero) corresponding to a relative equilibrium of the market driving force with acceleration. Positive values ​​indicate a growing uptrend, whereas negative values ​​have the possibility of qualifying as a downtrend development. The AC indicator changes its direction before any real trend change is generated in the market, therefore it serves as an early warning signal of possible changes in the trend direction.

To enter the market along with its driving force, one should be attentive to both cost and color.

2 consecutive green columns above zero degree would suggest you enter the market with a long stance.

They have the ability to take at least 2 red columns below zero degree for a command to fall short.

The wrong signals prevail in periods of time less than 4 hours.

Throttle Oscillator Formula (Calculation)

In the throttle oscillator formula, the CA bar graph is the difference between the 5/34 value of the driving force bar graph and the 5-period simple moving average, taken from that bar graph.

AO = SMA (average price, 5) -SMA (average price, 34)

AC = AO-SMA (AO, 5)

The throttle oscillator indicator is calculated as a difference between the impressive oscillator (AO) and the 5-period moving average of the AO.
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