Accelerator Oscillator

Accelerator Oscillator

Like Awesome Oscillator, Accelerator Oscillator was also developed by Bill Williams. Its aim is to forecast the price changes through measuring acceleration or deceleration of the current market driving force. This is possible because, according to Williams, the price usually starts moving slower before a reversal. As a result, Accelerator Oscillator changes direction slightly before the change in momentum. This, in turn, may be used to forecast the change of the price.

Accelerator Oscillator is calculated as the difference between the Awesome Oscillator and 5-period simple moving average of the Awesome Oscillator.

To add it to your chart in Metatrader, click “Insert”, choose “Indicators”, "Bill Williams" and then “Accelerator Oscillator”.

The oscillator fluctuates around the central zero levels. This is a place where the momentum and the acceleration are balanced. Its bars are either green (for the increasing acceleration) or red (for the decreasing acceleration).

How to trade using Accelerator Oscillator

It’s necessary to watch both the value and the color of the indicator’s bars. Notice that there’s a difference between the Awesome Indicator and the Accelerator Oscillator.

Firstly, the Accelerator Oscillator helps to eliminate bad entries. You shouldn't buy if you see a red bar and you shouldn't sell if the last bar is green.

Unlike the Awesome Oscillator, it’s not a signal when the Accelerator Oscillator crosses the 0 line, although it means a change in the market (a switch from bullishness to bearishness or vice versa) and certainly contributes to a trader’s judgment.

The potential solution is to buy if there are at least 2 green bars above 0 in a row. If the Accelerator Oscillator is below 0 and you want to open a buy trade, the momentum will be against you. As a result, the entry to a long position when the indicator value is negative requires an extra confirmation: you will need 3 green bars to buy instead of 2.

The same is will short positions. Sell when the Accelerator Oscillator forms at least 2 consecutive red bars below 0. If red bars are above 0, you will need 3 bars to sell.

Here is the example of signals provided by the Accelerator Oscillator:

AC.jpg

The Accelerator Oscillator and the Awesome Oscillator can be used for trade signals together with the Alligator Indicator. Bill Williams proposed to open trades when the latter allows it and use the 2 oscillators to make the trades more precise. At the picture below, the Alligator Indicator signals a downtrend. As a result, it’s sensible to focus on the sell trades suggested by the Accelerator Oscillator. This will lead to a better quality of market entries:

AC2.jpg

Latest news

ECB report is in focus

The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time. 

Markets await Biden to unveil "trillions dollars"

Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.

USD came under selling pressure

The US dollar’s weakness offered a boost to emerging-market currencies and oil.

Frequently asked questions

  • How to get the Trade 100 bonus?

    Boost your trading skills with free $100 from FBS. To activate this option, open a Trade 100 bonus account with $100 in it. Use the money during 30 days of active trading and trade five lots.  If you succeed, you can get your profit of $100. It is a win-win offer! Not only do you get a chance to profit, but you can also test the real markets and train your FX skills. 

  • How to open an FBS account?

    Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. 

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward.  Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera