Acceleration/Deceleration Oscillator (AC): Buy below the zero line / sell above the zero line |
If the histogram AC is below the zero line, a buy signal is generated when there are three consecutive green histogram bars. Place a Buy Stop one tick above the high of the price bar that corresponds to the third highest high (“D”). If the histogram is above the zero line, a sell signal is generated when there are three consecutive red histogram bars (pic.1). Place a Sell Stop one tick below the low of the price bar that corresponds to the third lowest low on the histogram (“D”). | ||||||||
 Picture 1. Acceleration/Deceleration Oscillator (AC): sell signal | ||||||||
| If histogram “B” or “C” bar crosses the zero line, then histogram “C” bar becomes a signal bar, and there is no need to wait for the “D” bar to occur. Bear in mind that no matter what signal is created you must ignore it until the first fractal buy or sell signal is triggered outside the Alligator's mouth. You should ignore signals that are not in the same direction as the first signal from fractal. If Acceleration / Deceleration Oscillator generates a signal but the histogram changes its colour before the pending order is executed, then the signal has to be ignored and the order has to be deleted. | ||||||||
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