Introduction

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,  in turn, will change its direction before the price.

Indicator Type

Oscillator

Formula: 

AC = AO−SMA(AO; 5).

MedianPrice = (High+Low)/2, (for TypicalPrice = (High+Low+Close)/3);

AO = SMA (MedianPrice; 5) −SMA (MedianPrice; 34), (AO is the Awesome Oscillator)

How to Use

Bullish Scenario

  • If the value of AC is above zero it is considered a bullish scenario. 
  • If the values grow the bullish trend increases indicating that buyers are strong and the price is likely to go up in the future. 
  • If the value decreases the bullish trend is weakening and might flat out in the future hinting that the prices may go down in the future.

Bearish Scenario

  • If the AC value is below zero then it is considered to be a bearish scenario.
  • If the value decreases further then bearish trend increases indicating more sellers than buyers hinting that prices might decrease in the future.
  • If the value increases mean that the bearish trend is decreasing and the curve might get flat and the prices may up in the future.
An example of AC Indicator along with Price Candlestick

Building on Mudrex

AC indicator can be used to enter/exit if the trend is growing or weakening. A growing trend is when the AC indicator starts to increase from a large negative value and a buy signal can be generated. Similarly, a falling trend is when the AC indicator starts to decrease from a large positive value and can be used to generate a sell signal.

Strategy:-

  • BUY:- AC indicator[EMA] crosses up (-100) with time period taken as 9.
  • SELL:- AC indicator[EMA] crosses down 100 with time period taken as 9.
  • Timeframe:- 3h

Creating on Mudrex

Components:- To create this strategy all we need is 2 indicator blocks, one to buy and one to sell.

For Buying, we will use the following settings:-

Indicator Block for Buy over Mudrex

For selling, we will use the following:-

Indicator Block for Sell over Mudrex

Final Strategy:-

AC Trading Strategy on Mudrex

Testing

Running on Binance Futures: BTC/USDT with tick interval of 3H yielded an overall profit of 76.83%

Back-Test Results for AC

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