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Accelerator Oscillator is one of the underrated gems in the field of trading. This indicator can help you analyse the asset movement and make informed decisions using this same. In this article, we will explore everything about Accelerator Oscillator on Pocket Option and how you can place high-accuracy trades using the same.
What is Accelerator Oscillator?
Accelerator Oscillator or you can call it Bill Williams Accelerator Oscillator is a trend indicator that was developed by Bill Williams. This indicator is designed to help traders to identify the changes in momentum which can be an early signal of possible trend reversal.
This indicator is made from the three most important components. Awesome oscillator short period ( period 5), Awesome oscillator long period ( period 34), and a Simple moving average (period 5).
The formula for the Accelerator Oscillator is:
AO = SMA(Median Price, 5) – SMA(Median Price, 34)
SMA stands for Simple Moving Average
The median Price is the average of the high and low price for each period
5 is the number of periods used for the shorter moving average
34 is the number of periods used for the longer moving average
AO stands for Accelerator Oscillator
How to add Accelerator Oscillator on the Pocket Option?
Once, you signed up. you will land on the trading dashboard. click on the indicator button and search for Accelerator Oscillator in the indicator menu.
Now, click the name and adjust the settings as per your requirements. You can also change the colour of the indicator line for better visibility.
How to trade with Accelerator Oscillator on Pocket Option?
There are three ways of trading with an Accelerator Oscillator on the Pocket Option trading platform.
- Solo Accelerator Oscillator: You can use the Solo Accelerator Oscillator on the Pocket Option platform to find the possible trends & reversals. when the histogram lines are above line zero it signals a bullish trend and vice versa when the histogram lines are below line zero it signals a bearish trend.
2. Conjunction with other trend indicators: You can even use the combination of two trend indicators like an Accelerator Oscillator with Stochastic or RSI this will help you give more accurate signals. When you find the possible trend using Accelerator Oscillator you need to next confirm the strength of the trend with the Stochastic or RSI Indicator.
3. Convergence & Divergence: When the price and the indicator line is moving in two opposite direction it signals indicator divergence and it usually means trend reversal. and vice versa when the price and indicator lines are moving in an equivalent direction it signals the convergence of the indicator and it usually means the continuation of a trend. You can use these signals to place trades accordingly.
Accelerator Oscillator or you can call it Bill Williams Accelerator Oscillator is a trend indicator that was designed and developed by Bill Williams. This indicator uses a series of histogram lines mainly green and red lines that oscillate around a zero line. when you notice the green line above the zero line it signals a bullish trend and vice versa, when you notice the red line below the zero line it signals a bearish trend.
I hope you have found this article helpful. If you still have any issues do comment below. and try the above indicator on the Pocket Option demo account.