BWI Accelerator Oscillator (phase force) trading indicator short info
"Acceleration/Deceleration (AC) is the third dimension of our market analysis. Remember that
the price is the last item to change. Before the price changes, the momentum changes: and
before the momentum changes direction, there must be a deceleration of momentum until
momentum comes to zero. Then it starts accelerating in the opposite direction, before the
price can change direction. That is what the AC measures, the Acceleration and Deceleration
of the current Momentum."
© Bill Williams. "Trading Chaos" see book...
- Implements 3rd dimension "Chaos trading system" (by Bill Williams) see book...
- Measures acceleration/deceleration of the current Momentum
- Shows active trading signals only
- Easy to customize
- Has presets
Appearance of the BWI Accelerator Oscillator
On the image you can see default view of the BWI Accelerator Oscillator. (As soon as you have added it to a chart.)
BWI Accelerator Oscillator has 3 types of signal. It displays them as rhombus with different sizes and colors. (appearance, size, color and etc. can be changed by trader by using indicators properties).
By default all Buy signals are green, Sell – blue; After the appearance of a rhombus (AC signal) trader should wait for breakout signal (displayed as arrow) and after that placing an order or he can place pending order higher/lower at a certain distance from maximum/minimum of a bar with AC signal.
The Breakout signal will appear when price go higher then bar’s maximum with a AC signal (or lower than bar’s minimum) on certain number of pips (in the original 1 pips).
To show where trader should place a pending order (using new fractal signal) – the indicator draws dotted line.
Appearance, colors, distance from signal bar maximum/minimum (is used to show breakout signal) and etc. trader can adjust using properties of the indicator.
How to Use - the BWI Accelerator Oscillator trading signals
How to Use - BWI Accelerator Oscillator trading signals filter
General Information about Accelerator Oscillator
Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force. This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price. If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.
The nought line is basically the spot where the driving force is at balance with the acceleration. If Acceleration/Deceleration is higher than nought, then it is usually easier for the acceleration to continue the upward movement (and vice versa in cases when it is below nought). Unlike in case with Awesome Oscillator, it is not regarded as a signal when the nought line is crossed. The only thing that needs to be done to control the market and make decisions is to watch for changes in color. To save yourself serious reflections, you must remember: you can not buy with the help of Acceleration/Deceleration, when the current column is colored red, and you can not sell, when the current column is colored green.
If you enter the market in the direction of the driving force (the indicator is higher than nought, when buying, or it is lower than nought, when selling), then you need only two green columns to buy (two red columns to sell). If the driving force is directed against the position to be opened (indicator below nought for buying, or higher than nought for selling), a confirmation is needed, hence, an additional column is required. In this case the indicator is to show three red columns over the nought line for a short position and three green columns below the nought line for a long position.