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Acceleration/Deceleration with alerts (Hendo@4C)
My variation of the Acceleration/Deceleration by Bill Williams. I found the existing variations of this indicator on TradingView severely lacking in terms of options. Credits go to a close friend who recommended writing this.
NOTE: The setting called: "Invert acceleration dots", can make gauging tops and bottoms "earlier" easier. Due to the nature of this indicator and the fact that you can set alerts on deceleration.
//Overview of settings//
That’s all in terms of settings. Most of these settings also describe the use case.
The use case as described by TradingView is the following:
“The Accelerator Oscillator (AC) is an indicator developed by Bill Williams that helps traders gauge changes in momentum. It is based on the Awesome Oscillator (AO) and measures the difference between that indicator and its 5-period moving average, effectively showing how quickly the AO changes and predicting what it will do next. If the AC is in positive territory, the upward acceleration is likely to continue. If the AC is in negative territory, the downward acceleration is likely to continue. The bars in the histogram have 2 colors: red indicating a fall in price and green indicating a rise in price. Various specific buy and sell signals can be derived from the color of the bars and whether they are above or below the 0-line.”
I’ve decided to add any alert I could think of: Meaning there are in total 22 customizable alerts to set up when using this indicator. If you have any conditions that I forgot to add feel free to leave a comment.
NOTE: The setting called: "Invert acceleration dots", can make gauging tops and bottoms "earlier" easier. Due to the nature of this indicator and the fact that you can set alerts on deceleration.
//Overview of settings//
- “Plot tops and bottoms” default: TrueAn option to enable plotting shapes when a top or bottom is printed. I use a non conventional way to detect tops and bottoms. This secures false signals. Alerts can be added to this.
- “Fill background” default: TrueFills the background between the A/D and the 0 line.
- “Source for A/D” default: (high+low)/2 This is the source for calculation of the indicator. Bill Williams himself describes using the “HL2” and this is what the default value is. Potentially once could experiment with “HLC3” (high+low+close)/3. Since this is also a popular way of using this indicator.
- “Length of F-SMA” default: 5The length of the fast simple moving average that the indicator uses. Again: The default is 5 but one could experiment with higher/lower values to change the reaction time of the indicator.
- “Length of S-SMA” default: 34The lenght of the slow simple moving average that the indicator uses. The default by Bill Williams here is 34. One could experiment with higher values to reduce noise.
- “Activate less noise mode” default: FalseUses a proprietary way of averaging values in price. This creates an entirely new indicator in itself. Can be very useful for trading the lower timeframes. It is however advised to understand that enabling this settings will not make the indicator the “standard A/D // AC” anymore.
- “Plot alert levels” default: FalseThis setting allows you to plot extra levels at certain values (just like the RSI for example). Keep in mind however that you need to manually adjust the values to fit the instrument you’re trading. Of course you can set alerts to these levels. Be careful enabling this: Since it might pull the chart out of proper scaling.
- “Value of +Line plot” default: 25”Sets the level of the first “alert level” described earlier. I picked 25 as an example for Bitcoin. Be careful setting these levels: Since it might pull the chart out of proper scaling.
- “Value of -Line plot” default: -25”Sets the level of the second “alert level” described earlier. I picked -25 as an example for Bitcoin. Be careful setting these levels: Since it might pull the chart out of proper scaling.
- “Fill background between lines” default: FalseEnabling this will fill the background between the previously discussed +Line plot and the -Line plot. Again: Much like RSI.
- “Color background if 0 is crossed” default: TrueColors the background of the indicator everytime the 0 line is crossed. Of course alerts can be set up in order to push an alert every time this happens. The default color for this is “Fuchsia”. Because it contrasts well.
- “Show visual accel/decel” default: TrueUses a few simple mathematical functions in order to calculate if the A/D is accelerating or decelerating. If enabled it will plot dots when the A/D is accelerating up or accelerating down: Meaning: When the change is more rapid than the previous change (hence acceleration).
- "Invert acceleration dots" default: FalseChanges the previous function mentioned: Let’s say you don’t want to know acceleration but you want to know the the A/D is decelerating (meaning: The change is less rapid than the previous change). You can enable this setting. If you enable this it will plot dots on the A/D when we’re decelerating instead of accelerating. (hence deceleration).
- "Color entire background of A/D" default: FalseIn case you desire to plot the entire background of the indicator you can enable this setting. Might make it a little bit more easy to spot changes in the A/D (especially when using multiple indicators).
That’s all in terms of settings. Most of these settings also describe the use case.
The use case as described by TradingView is the following:
“The Accelerator Oscillator (AC) is an indicator developed by Bill Williams that helps traders gauge changes in momentum. It is based on the Awesome Oscillator (AO) and measures the difference between that indicator and its 5-period moving average, effectively showing how quickly the AO changes and predicting what it will do next. If the AC is in positive territory, the upward acceleration is likely to continue. If the AC is in negative territory, the downward acceleration is likely to continue. The bars in the histogram have 2 colors: red indicating a fall in price and green indicating a rise in price. Various specific buy and sell signals can be derived from the color of the bars and whether they are above or below the 0-line.”
I’ve decided to add any alert I could think of: Meaning there are in total 22 customizable alerts to set up when using this indicator. If you have any conditions that I forgot to add feel free to leave a comment.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.