AO and AC Zones
By trading system Bill Williams zone is formed by a combination Accelerator Oscillator (AC) and Awesome Oscillator (AO). When they go up, we are in the green zone. When columns AO and AC red, we are in the red zone. If one of the columns in red, and the other – green, we are in a gray area.
- When the current histogram bars AC and AO above columns that precede them, the indicator turns green.
- If the current histogram bars AC and AO lower columns that precede them, the indicator turns red.
- If AO and AC are of different colors, the indicator turns gray.
Green and red zone
Zone provides an opportunity to the aggressive actions of the market. Make large profits by using this method. Correct balance signal lines in different zones. Motto trade in the area – aggressively replenish their current positions.
The gray zone
Gray bars indicate that the driving force has one direction, and the acceleration is aimed in the opposite direction. This may indicate the following: the market temporarily loses interest in maintaining the direction in which it moves. Interest decreases for both buyers and sellers. We do not add on the basis of the zone signals, if the gray bar.
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