Acceleration/Deceleration Oscillator (AC)

Parameters: fast_period = 5 (2–50) • slow_period = 34 (10–200) • signal_period = 5 (2–20)

Overview

The Acceleration/Deceleration Oscillator (AC) is a momentum indicator developed by Bill Williams as part of his Trading Chaos theory. It measures the acceleration and deceleration of the current driving force behind price movements. The AC indicator is designed to change direction before any changes in the driving force, which in turn changes direction before the price itself, making it an early warning system for potential trend changes.

The AC is plotted as a histogram with green and red bars that oscillate above and below a zero line. Green bars indicate increasing acceleration while red bars indicate increasing deceleration. This visual representation makes it easy to spot momentum shifts at a glance.

Interpretation & Trading Signals

Buy Signals:

  • Above Zero Line: Two consecutive green bars (momentum is with you)
  • Below Zero Line: Three consecutive green bars (requires more confirmation against momentum)

Sell Signals:

  • Below Zero Line: Two consecutive red bars (momentum is with you)
  • Above Zero Line: Three consecutive red bars (requires more confirmation against momentum)

Key Principles:

  • Zero Line: Unlike the Awesome Oscillator, crossing the zero line is NOT a trading signal
  • Color Changes: Focus on bar color changes rather than zero line crosses
  • Momentum Context: Trading with momentum (buy above zero, sell below zero) requires fewer confirming bars
  • Integration: Works best when combined with other Bill Williams indicators (Alligator, AO, Fractals)

Example Usage

Code examples will be available once the Rust implementation is complete.

Performance Analysis

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