Accelerator Oscillator is available in the “Opening logic condition” and “Closing logic condition” slots.
If you have any questions concerning Accelerator Oscillator, ask in the program's Forex Forum.
Acceleration/Deceleration Technical Indicator (AC) is introduced by Bill Williams in his book “Trading Chaos”. The AC indicator measures acceleration and deceleration of the current driving force (Awesome Oscillator). It is represented in a separated histogram chart. When the AC value of the current bar is greater than the previous bar value, the histogram bar is colored in green (and vice versa - lower value, red bar). According to Mr. Williams, this indicator will change direction before any changes in the driving force, which will change its direction before the price. When the AC value is near to the zero line, this means that the driving force is balanced. If Accelerator Oscillator is higher than zero, then it is usually easier for the acceleration to continue the upward movement and we can expect a rise in the market price. Normally, a green bar of the AC shows us that we can open a long position, and respectively, a red bar - that we can enter a short position.
1. We calculate one Awesome Oscillator] as the difference between two Moving Averages:
Fast МА = Moving Average (Smoothing method, Base price, Fast MA period)
Slow МА = Moving Average (Smoothing method, Base price, Slow MA period)
AO = Fast MA - Slow MA
2. We calculate one Moving Average based on AO:
Forming МА = Moving Average (Smoothing method, AO, Forming MA period)
3. AC represents the difference between AO and Forming AM:
AC = AO - Forming МА
Where:
AO - Awesome Oscillator
MA - Moving Averages
Logic - the logic followed when applying the indicator:
Smoothing method - when calculating the Accelerator Oscillator, Forex Strategy Builder uses Moving Average to smooth values. From this menu you can choose the method of calculation of MA:
Base Price - the base price which serves to calculate the Accelerator Oscillator:
Slow MA period - the period of the Slow MA for calculating the Accelerator Oscillator.
Minimum value: 1; Maximum value: 200
Fast MA period - the period of the Fast MA for calculating the Accelerator Oscillator.
Minimum value: 1; Maximum value: 200
Forming MA period - the period of the Forming MA for smoothing the Accelerator Oscillator.
Minimum value: 1; Maximum value: 200
Level - Forex Strategy Builder uses the Level value when the logic of the indicator is:
Minimum value: -10; Maximum value: 10
Use previous bar value - you have to mark Use previous bar value when the price at which you open a position is different from the Price Close of the bar and the base price of the indicator is different from the Price Open. That way, you make sure that you are using the right value of the indicator at the time of opening of the position.
In the “Closing logic condition” slot it must not be marked.
Default values
1. “Opening logic condition”
In this slot, Accelerator Oscillator functions as an entry filter. The logic condition of the indicator must be fulfilled (the same applies to all other entry filters) in order to gain permission to enter a long position.
Permission to enter a short position is granted only after the mirror logic condition of the indicator has been fulfilled.
2. “Closing logic condition”
When using Accelerator Oscillator as an exit filter, it will make the strategy close the current position at the Price Close of the bar, when its logic condition is fulfilled.