{"id":10845,"date":"2023-09-25T15:24:25","date_gmt":"2023-09-25T08:24:25","guid":{"rendered":"https:\/\/eaforexcenter.com\/product\/accelerator-oscillator\/"},"modified":"2026-01-12T16:19:25","modified_gmt":"2026-01-12T09:19:25","slug":"accelerator-oscillator","status":"publish","type":"product","link":"https:\/\/eaforexcenter.com\/en\/product\/accelerator-oscillator\/","title":{"rendered":"Accelerator Oscillator"},"content":{"rendered":"

This article is part of a series presenting the use of various Indicators available in MT4, MT5, and Tradingview. The purpose is for traders to learn how to use and choose different Indicators that suit their trading style and habits to generate profits. In this article, we unravel what Accelerator Oscillator<\/strong> is<\/strong>, how it works, and how to find trading signals… Let’s read on<\/span><\/p>\n

*Note: I should mention that traders should read carefully as they might confuse “Accelerator” Oscillator with “Awesome” Oscillator (their names are similar) <\/span><\/p>\n

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Accelerator Oscillator<\/strong> is<\/strong><\/span><\/h2>\n

Accelerator Oscillator<\/strong> is a <\/strong>forex indicator<\/strong> created and developed by technical analyst Bill Williams<\/strong>. It’s an extension of the classic and widely used Indicators <\/strong>Moving Average (MA) <\/strong>and<\/strong> Awesome Oscillator (AO)<\/strong>, which Bill also created<\/span><\/p>\n

The main concept of Accelerator Oscillator (AC) <\/strong>is an indicator that helps measure and show us the direction of momentum <\/strong>or trend<\/strong> that’s about to occur first and will affect the price later. Simply put,<\/span><\/p>\n

<\/em><\/span><\/p>\n

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When we know the direction of momentum in advance, we can predict the direction of price<\/em><\/span><\/p>\n<\/blockquote>\n

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How Accelerator Oscillator works<\/strong><\/span><\/h2>\n

AC <\/strong>calculates momentum from another of Bill’s Indicators abbreviated as AO<\/strong>, which compares the Simple Moving Average (SMA)<\/strong> between the 5th and 34th candles from the latest candle (5 and 34 are standard values, can be adjusted). Subtracting SMA5 gives us this simple equation:<\/span><\/p>\n

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AO = SMA 5 – SMA 34<\/em><\/span><\/strong><\/p>\n

AC = AO – SMA 5<\/em><\/span><\/strong><\/p>\n

<\/em><\/span><\/p>\n

The result is displayed as a Histogram with green and red colors below the chart like this:<\/span><\/p>\n

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Figure 1<\/strong> MT4 default has only 2 colors, Tradingview default has dark green, light green, dark red, light red. Can be set to have only 2 colors<\/figcaption><\/figure>\n

Reading <\/strong>Accelerator Oscillator<\/strong><\/span><\/h2>\n

We’ll divide it into 3 parts: 1. Above the zero line<\/strong> (green), 2. The zero line<\/strong> (white), and 3. Below the zero line<\/strong> (red)… Basic reading is if the AC bar is green and above or slightly below the zero line, it’s a signal of buying pressure and possibly an uptrend. Conversely, if the AC bar is red and below or slightly above the zero line, it’s a signal of selling pressure, possibly a downtrend.<\/span><\/p>\n

Another dimension that the AC Indicator tells us is the length of the Histogram bars. Their meaning is the longer the bar, the more volatility; if the bar is short, it means less volatility<\/em><\/strong>. So what? Longer bars mean a stronger trend tendency in that direction, making it easier to predict entry signals than shorter bars, which may change trend more easily than longer bars. <\/span><\/p>\n

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Figure 2<\/strong> Histogram bars above the zero line will be green and red when below the zero line<\/figcaption><\/figure>\n

Finding signals to enter orders<\/strong><\/span><\/h2>\n

Once we know how to read basic values, we need to know when to place orders. The signal to enter an order for AC is to look for bars that are long and changing color<\/strong>. For example, if the momentum is in a downtrend, red bars are below the zero line, then green bars start to appear, it’s a signal for us to enter a Buy order.<\/span><\/p>\n

But, but, but, but there’s also something called Fake\/False Signals<\/strong>. In AC’s case, suppose there are red bars below the zero line, we see a trend of momentum reversal, bars start turning green, so we decide to enter an order. But it turns out the next bar turns red again, making that trade go in the wrong direction.<\/span><\/p>\n

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Figure 3<\/strong> Fake Signals can occur often. If you rush to place orders, it might be difficult to make a profit.<\/figcaption><\/figure>\n

Increasing accuracy in entering orders<\/strong><\/span><\/h2>\n

To solve the problem of fake signals, there are several methods, such as:<\/span><\/p>\n