The Accelerator_Decelerator indicator is another popular tool developed by Bill Williams. AD is called a tool that determines the driving force of the market. He is able to calculate and display on the chart the rate of acceleration and deceleration of prices. The indicator belongs to the group of oscillators and is displayed on the chart as a histogram.
You can download it For Free at the link below.
The graph of the Accelerator_Decelerator indicator is based on the oscillator. Its indicators are set by the difference between the driving force of the histogram and a simple moving average. The first parameter can have values 5 and 34, while the second is indicated by five periods. Based on the price chart, the Accelerator_Decelerator indicator constantly monitors the market situation and measures the strength that is currently affecting the market. This trading indicator warns the trader about the beginning of a possible strong price movement in a certain direction.
Instrument readings are calculated using the following formula:
AD = AO - SMA (AO, 5)
The Accelerator_Decelerator value is equal to the difference between the Awesome Oscillator (AO) indicators and the 5-period Simple Moving Average (SMA) from the AO, which is calculated at closing prices. The Awesome Oscillator indicator was also developed by Bill Williams.
Signals for entering the market are certain sequences of bars of the Accelerator_Decelerator histogram.
Buy signals can be considered green bars located above the zero marks in an increasing sequence or green bars below zero in a decreasing trend. The same is true for sell signals, but with inverse values. Red bars above the zero mark in a decreasing trend and red bars located below the zero marks in an increasing trend can be considered as sell signals.
To increase the effectiveness of the trading strategy, we recommend using the Accelerator_Decelerator indicator in combination with other tools, for example, driving force, fractals, line of balance, and zone trading. However, using this indicator separately can also give good results. In order to reduce false signals, the prevailing tendency should be previously determined in order to work only in its direction.
Download the Accelerator Decelerator indicator for MetaTrader 4 from the button below
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Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.