ACCELERATOR OSCILLATOR: THE SPEED OF CONVERGENCE
Accelerator Oscillator is a leading indicator available in your MetaTrader 4 trading platform, that measures the speed of convergence on each change of trend in Forex trading. This indicator uses moving averages to predict changes in Forex trends; it gives you a prediction of a change from a Bullish market to a Bearish one or a change between Bearish market to a Bullish one.
The mathematical expression that determines the Accelerator Oscillator indicator is:
Awesome Oscillator: is a technical indicator based in the difference between fast and slow moving averages. A moving average is faster than a lower one if contains less time frames. We will explain this indicator in a future article.
AO Moving Average: Is the moving average of the Awesome Oscillator.
We will show you an example of this technical indicator in your Forex Trading MT4:
The green line is a sign of a bull trend; a green line is always greater than the last before. You could check it from September 4 to September 11.
The red line is a sign of a bear trend; a red line is always smaller than the last before. You could check it from September 23 to September 31.
If the Awesome Oscillator is greater than the AO Moving Average, the Accelerator Oscillator is greater than cero (The dotted line) and vice versa.
You should use more than one indicator before placing your orders, and remember that risk is always present in any investment of the entire world.