The Accelerator Oscillator (AC) technical indicator measures the acceleration or deceleration of the current market strength. It is designed to identify potential trend reversal points and is used to determine the moment of buying or selling assets. The indicator helps traders make decisions based on changes in market dynamics.
This implementation of the indicator is its creative version. Since the standard version is very limited by its built-in settings, this implementation has significantly more expanded functionality. Let's consider this further.
Period - Number of bars for calculation. Possible options:
AvgBars - Smoothing of the final line of the indicator. Possible options:
Representation - Possible methods of projecting the indicator. Possible options:
Amplitude is the maximum distance that an object oscillates from its equilibrium position. Visually, it can be represented as the distance from the central point (mean position) to the extreme point of the object's trajectory. If we consider a pendulum, the amplitude is the greatest deviation of the pendulum from the vertical.
Speed is how fast an object moves. Geometrically, speed indicates the direction and magnitude of an object's movement at each moment in time. In the case of oscillations, speed is highest when the object passes through the mean position (equilibrium position) and zero when the object is at the extreme points (maximum deviations).
Acceleration is how quickly the speed of an object changes. Geometrically, this can be imagined as an arrow that always points toward the mean position. In the case of oscillations, acceleration is highest at the extreme points (when the object is farthest from the mean position) and zero when the object passes through the mean position.
These concepts are interrelated and describe different aspects of the movement of an oscillating object.
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