## What Is Acceleration/Deceleration?

Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force of the market.

This indicator will change direction before any changes in the driving force, which, in turn, will change its direction before the price.

The acceleration/deceleration indicator realises in practice the idea, that the price changes in the last turn before the change of direction. Before a turn, the price will restrict the speed of movement in the direction it is moving, and therefore, the data for the acceleration of the price is required, be it positive or negative. At the time of the turn, the price acceleration will be zero.

## Acceleration/Deceleration Indicator

The Acceleration/Deceleration Indicator is an **oscillator** indicator and is a logical continuation of the Awesome Oscillator (AO).

The indicator shows when the price is reducing the dynamics of the current trend, and the trader then has to estimate its acceleration to enter or exit the market.The histogram can showcase when a bullish or bearish trend is possible and helps the traders see when the buyer’s trend is stronger and when the sellers are getting stronger.

## How To Calculate Acceleration/Deceleration using Formula?

To calculate the Acceleration/Deceleration, we have to consistently calculate the Median Price. The Median Price Formula is:

**MedianPrice** = (High+Low)/2, (for TypicalPrice = (High+Low+Close)/3);

Once we have the Median Price, we then have to calculate the Awesome Oscialltor before we can get to the Acceleration/Deceleration. The Awesome Oscillator formula is:

**AO **= SMA (MedianPrice; 5) −SMA (MedianPrice; 34), (AO is the Awesome Oscillator)

Finally, we now have the necessary data for Acceleration/Deceleration, the formula for which is:**AC **= AO−SMA(AO; 5);

## Why Use Acceleration/Deceleration?

The Acceleration/Deceleration Oscillator is a proven trading strategy and is included in all major trading platforms.

The indicator is consistently effective when combined with other tools, including moving averages or Parabolic.

The indicator can be used to assess the state of the flat. Which is, when there are low volatility periods, the histogram will oscillate in the zero-line zone, with a minimum amplitude.

## How to Use Acceleration/Deceleration Trading Strategy?

#### Bullish Scenario

- If the value of AC is above zero it is considered a bullish scenario.
- If the values grow the bullish trend increases indicating that buyers are strong and the price is likely to go up in the future.
- If the value decreases the bullish trend is weakening and might flat out in the future hinting that the prices may go down in the future.

#### Bearish Scenario

- If the AC value is below zero then it is considered to be a bearish scenario.
- If the value decreases further then bearish trend increases indicating more sellers than buyers hinting that prices might decrease in the future.
- If the value increases mean that the bearish trend is decreasing and the curve might get flat and the prices may up in the future.

## Building Acceleration/Deceleration Trading Strategy on Mudrex

AC indicator can be used to enter/exit if the trend is growing or weakening. A growing trend is when the AC indicator starts to increase from a large negative value and a buy signal can be generated. Similarly, a falling trend is when the AC indicator starts to decrease from a large positive value and can be used to generate a sell signal.

### Strategy:-

**BUY**:- AC indicator[EMA] crosses up (-100) with time period taken as 9.**SELL**:- AC indicator[EMA] crosses down 100 with time period taken as 9.**Timeframe**:- 3h

### Creating on Mudrex

Components:- To create this strategy all we need is 2 indicator blocks, one to buy and one to sell.

For Buying, we will use the following settings:-

For selling, we will use the following:-

Final Strategy:-

#### Testing

Running on Binance Futures: BTC/USDT with tick interval of **3H**** **yielded an overall profit of 76.83%

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