Get started

Acceleration

Deep dive into Acceleration / Deceleration Indicator Hello, Skyrexians! Last time we discussed how you can use the Awesome Oscillator to create profitable crypto trading strategies and which type of signals it generates. Today we will deep dive into Acceleration/Deceleration (AC) the next Bill Williams indicator, which can also enhance your cryptocurrency trading strategy. This indicator also can be valuable not only for manual trades, but also for developing your crypto trading algorithm, crypto algo trading platform, crypto trading bot, ai trading bot or grid bot. The main thing is to understand what is the AC indicator and which signals it generate, which signals we shall use in crypto trading like top crypto traders. Let's go! What is Acceleration / Deceleration? The Acceleration/Deceleration Oscillator (AC) is a technical analysis indicator developed by Bill Williams, a notable trader and author known for his work in market psychology and trading systems. This indicator helps traders identify changes in market momentum and potential trend reversals. How the Acceleration/Deceleration (AC) Indicator Works? The AC indicator is based on the idea that the momentum of the market (speed of price movement) often changes before the price itself changes. By identifying these shifts in momentum early, traders can anticipate potential trend changes. The AC is derived from the Awesome Oscillator (AO), another indicator created by Bill Williams, which is the difference between a 34-period and a 5-period simple moving average of the median price (the average of high and low prices). The AC is calculated by subtracting a 5-period simple moving average of the AO from the AO itself. Mathematically, it can be represented as: AC = AO − SMA5(AO) Where AO is Awesome Oscillator (calculated as the difference between the 34-period SMA and the 5-period SMA of the median price). SMA5(AO) is 5-period simple moving average of the AO. Now let's consider which types of signals AC can generate.
Education
by Skyrexio
MACD 1D: X, XD, XDD, and P=M(XD)Andrew M. Kempi 7 January 2023 MACD 1D Methodology: X, XD (X•), XDD (X••), and P=M(XD) Determine Volume psychology and volume mass. P=Mass(Velocity), p=volume(XD), including pascal averaging. The Volume, and price value, is dependent on Velocity (XD). Velocity is dependent on Acceleration. Confirm undeviated direction and trend. Establish location: above or below directional price average. Trend symmetrically around price average. Confirm XDD (X••) acceleration. Identify the Vector utilizing XD (X•).
SP:SPXEducation
by privatepizza111
ACCELERATION OF A SMALL DEPOSITToday I want to talk about a topic that every novice trader has to face. Most beginner traders save up money to make the first deposit and very often this amount is too small for trading, but the broker gives you the opportunity to trade anyway, why is that? The fact is that the smaller the deposit, the easier it is to lose them, and the broker knows this. Therefore, for calm trading, you need an amount greater than $100 or $500. The optimal amount to start trading is $1000 What is the danger of a small deposit? Beginners can be anyone from a student to a businessman. And very often the initial funds will be small, because the reason people come to the market is to make money! A person invests $10, not because he is greedy, but because there are simply no more free funds. At the same time, the trader is already dreaming of millions, and his head begins to spin from such thoughts. As a result, deals are opened for $1, then for $2, and in the end all the money is lost. The market does not bring quick profits. It is also impossible to deposit the last money or money borrowed. All this will only lead to the drain of the deposit. 1000$? Why $1000 is considered the best start? This question can be answered by the rules of money management. Everyone remembers the rules of risk, let's say you decide not to risk more than 5% on each trade. When trading intraday, the position size is 20-50 pp., that is, when trading micro-lots of 0.01, the risk per trade will be $2-$5. Such a risk is acceptable for a $100 account, since then it will be 5%. When trading on daily timeframes, the average risk is even higher: 50-100 pp. (5-10 pp.). In this case, the account must be at least $200. As you can see, money management clearly indicates the minimum deposit size. This is when trading micro-lots. As a rule, traders use standard lots because they want to make quick money and it is very risky. Therefore, you should not start trading with $10 or $200. It is better to save and collect the required amount, or at least $500, and then it will be easier to trade. But what if you can't wait? How to disperse the deposit? There are a couple of rules: A trader must have a working trading strategy that has proven itself well on a demo account and on a real account; Comply with risk management rules; Provide a deposit amount of $200-$400. Subject to these conditions, you can “softly” disperse the deposit. Overclocking With a quick acceleration of the deposit, the risks increase, you must understand this. Here are three principles that make it possible: The risk per trade is set higher than in the classic MM, and can reach 10%; If the trade is unprofitable, the risks are not doubled; When the deposit is broken up to the set limit (for example, from $200 to $500), the trader returns to the previous risk of 5% and trades for several months in compliance with Money Management rules. Then you can repeat the "acceleration". pyramiding A popular way to accelerate a deposit is Pyramiding, the meaning of which is to add positions. Here's how it goes: You determine the main trend on the daily timeframe and open a position following the trend. Then wait for another signal indicating the continuation of the trend. If there is a signal, open another position along the trend. The protective stop-loss order of the first order is transferred to the opening level of the second order, that is, to breakeven. The size of the take profit on the second trade should be small, because the trend can change direction at any time. It is important to remember that this strategy only works if there is a trend, so a flat or correction should be avoided. Outcome Trading this way is very risky. The best way is to raise an amount equal to or greater than $1,000. Then trading will become less dangerous for you, since you can use the standard money management rules. Before dispersing the deposit, you must set yourself a goal, after reaching which, be ready to use the standard risk rules. Big risks are rewarded, but even they need to be taken with intelligence and control. Good luck!
Education
by DeGRAM
3
MaMA : Momentum adjusted Moving AverageA brand new Moving Average , calculated using Momentum, Acceleration and Probability (Psychological Effect). Momentum adjusted Moving Average( MaMA ) is an indicator that measures Price Action by taking into consideration not only Price movements but also its Momentum, Acceleration and Probability. MaMA , provides faster responses comparing to the regular Moving Average Here is the math of the MaMA idea Momentum measures change in price over a specified time period momentum = source – source(length) where, source, indicates current bar’s price value source(length), indicates historical price value of length bars earlier Lets play with this formula and rewrite it by moving source(length) to other side of the equation source = source(length) + momentum to avoid confusion let’s call the source that we aim to predict as adjustedSource adjustedSource = source(length) + momentum looks nice the next value of source simply can be calculated by summing of historical value of the source value and value of the momentum. I wish it was so easy, the formula holds true only when the momentum is conserved/constant/steady but momentum move up or down with the price fluctuations (accelerating or decelerating) Let’s add acceleration effects on our formula, where acceleration is change in momentum for a given length. Then the formula will become as (skipped proof part of acceleration effects, you may google for further details) adjustedSource = source(length) + momentum + 1/2 * acceleration here again the formula holds true when the acceleration is constant and once again it is not the case for trading, acceleration also changes with the price fluctuations Then, how we can benefit from all of this, it has value yet requires additional approaches for better outcome Let’s simulate behaviour with some predictive approach such as using probability (also known as psychological effect), where probability is a measure for calculating the chances or the possibilities of the occurrence of a random event. As stated earlier above momentum and acceleration are changing with the price fluctuations, by using the probability approach we can add a predictive skill to determine the likelihood of momentum and acceleration changes (remember it is a predictive approach). With this approach, our equations can be expresses as follows adjustedSource = source(length) + momentum * probability adjustedSource = source(length) + ( momentum + 1/2 * acceleration ) * probability , with acceleration effect Finally, we plot MaMA with the new predicted source adjustedSource, applying acceleration effect is made settable by the used from the dialog box, default value is true. What to look for: • Trend Identification • Support and Resistance • Price Crossovers Recommended settings are applied as default settings, if you wish to change the length of the MaMA then you should also adjust length of Momentum (and/or Probability). For example for faster moving average such as 21 period it would be suggested to set momentum length to 13 Alternative usage, set moving average length to 1 and keep rest lengths with default values, it will produce a predictive price line based on momentum and probability. Experience acceleration factor by enabling and disabling it Conclusion MaMA provide an added level of confidence to a trading strategy and yet it is important to always be aware that it implements a predictive approach in a chaotic market use with caution just like with any indicator Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely Disclaimer : The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
FX_IDC:XAUUSDEducation
by dgtrd
13