Acceleration/Deceleration
Developed by Bill Williams
Acceleration/Deceleration measures acceleration and deceleration of the trend momentum - it is popularly used to analyze both stock markets & bitcoin market movements.
This indicator changes direction before the bitcoin price changes its direction.
Acceleration/Deceleration is used to generate early trading signals of trend reversals.
If AC changes direction then bitcoin price direction will soon follow.
BTCUSD Analysis & How to Generate Trading Signals
Zeroline is the spot where the momentum is at balance with the acceleration or deceleration.
If Acceleration/Deceleration is higher than Zero, then it is easier for the acceleration to continue in the upward movement.
If Acceleration/Deceleration is lower than Zero, then it is easier for the deceleration to continue in the downward movement.
The Zero point is not regarded as a buy or sell cryptocurrency signal when it is crossed.
A buy or sell bitcoin trade is generated when the color of the AC changes from red to green.
Buy Trading Signal
When the current column changes from red to green this is interpreted as a buy.
When the current column is colored red, you can not buy.
When the technical indicator is higher than Zero and the current bar is green a buy bitcoin signal is generated.
When the AC is lower than zero and the current bar is green a confirmation signal is required for a buy. Three green bars is usually another confirmation.
Sell Trading Signal
When the current column changes from green to red this is analyzed as a sell.
When the current column is colored green, you can not sell.
When the technical indicator is lower than Zero and the current bar is red is a sell bitcoin signal is generated.
When the AC is higher than zero & the current bar is red a confirmation signal is required for a sell. Three green bars is usually another confirmation.
Technical Analysis in Bitcoin Trading