The Accelerator Oscillator is one of several popular pointers developed by the well- known specialized critic Bill Williams. Williams maintained that the direction of instigation will always change before the price, so that looking at instigation rather of just the price provides a timing advantage. The Acceleration Indicator seeks to go one step further and descry early changes in instigation – that is, when instigation is accelerating or braking.

So Williams contended that before the trend in the price changes, the direction of instigation will change, and that indeed before this, there will be an acceleration change in instigation. The Accelerator Indicator( also known as the Acceleration/ retardation Indicator) was the tool he developed to gauge this change.
Calculating the Acceleration Oscillator
The Acceleration Oscillator is deduced from the stupendous Oscillator( AO), another of Bill Williams’ pointers. The stupendous Oscillator compares a 5- period time frame to a 34- period time frame, in order to gain sapience into request instigation. Specifically, the AO is the 34- period simple moving normal( SMA) of the median price abated from the 5- period SMA of the median price.

The Acceleration Oscillator is deduced from the stupendous Oscillator, by abating a 5- period SMA of the AO from the AO. This is summarised by the following equation

Acceleration Oscillator = AO- SMA5( AO)
Naturally, keeping tabs of the value of the Acceleration Oscillator, as a outgrowth of another index that itself uses multiple moving pars, would be irksome in the extreme, by way of homemade computations. The good news is, of course, that homemade computations aren’t demanded, because MetaTrader 4 will take care of it all for you.