Download and learn how to trade the Acceleration-Deceleration Oscillator (AC). This indicator measures whether the market momentum is increasing or decreasing. It gives you an early warning of changes in price direction.
If the AC indicator is above the 0 level, it’s likely that the price will rise, and if it’s below the level, the price is likely to fall.
It is derived from the Awesome Oscillator (AO) indicator. It’s the current value of AO minus the simple moving average (SMA) of AO over the most recent five intervals:
AC = AO – SMA( AO, 5 )
AO is, in turn, the SMA of the median price (MP) for five intervals, minus the SMA of the MP over 34 intervals:
AO = SMA( MP, 5 ) – SMA ( MP, 34 )
The median price is the average of the high and low prices in an interval.
MP = ( high price – low price ) / 2
- File: acceleration_deceleration_oscillator.mq4
- Size: 3 Kb