What is Accelerator Oscillator (AC) 

The Accelerator Oscillator measures the acceleration or deceleration of price momentum.
It’s designed to show momentum changes before the price actually reverses — meaning it’s often an early warning tool.

It’s derived from the Awesome Oscillator (AO):

…. so AC shows how quickly momentum is speeding up or slowing down.

📊 How to Read the AC Histogram

You’ll see vertical bars (usually red and blue or green) oscillating above and below a zero line.

🔹 1️⃣ Above the Zero Line

• Market momentum is bullish (price tends to rise).
• If bars grow taller upward (increasing) → momentum accelerating up → possible buy opportunity.
• If bars shrink → bullish momentum slowing → possible pause or correction.

🔹 2️⃣ Below the Zero Line

• Market momentum is bearish (price tends to fall).
• If bars grow taller downward (increasing in negative) → momentum accelerating down → possible sell opportunity.
• If bars shrink → bearish momentum weakening → possible rebound soon.

🎨 Color Interpretation

• Blue (or Green) Bars: Momentum is increasing (acceleration).
• Red Bars: Momentum is decreasing (deceleration).

Each color change means the speed of the price move is changing — before the price itself turns.

🧭 How to Trade Using the Accelerator Oscillator

✅ Buy Setup

1. Look for blue/green bars forming above the zero line — showing strong upward acceleration.
2. If bars were red before and turn blue, it’s an early bullish signal.
3. Confirm with:
• Parabolic SAR dots below candles, or
• Stochastic turning up from oversold.

📈 Entry idea: Buy when two consecutive blue bars appear above zero.

✅ Sell Setup

1. Look for red bars forming below the zero line — showing strong downward acceleration.
2. If bars were blue and turn red, it’s an early bearish signal.
3. Confirm with:
• SAR dots above candles, or
• Stochastic turning down from overbought.

📉 Entry idea: Sell when two consecutive red bars appear below zero.