Accelerator Oscillator: Measuring Momentum Acceleration from Price Midpoints

Summary

The note introduces the Accelerator Oscillator (AC) and gives its calculation from high and low prices. It first takes each bar’s midpoint, then calculates an Awesome Oscillator by subtracting a longer-period moving average from a shorter-period moving average. AC is the Awesome Oscillator minus its own moving average, so it represents the oscillator’s deviation from its smoothed value.

The document names the required inputs and parameters but does not specify parameter values, explain how to interpret positive or negative readings, or provide entry and exit rules. It points to an external reference for the indicator’s meaning, but that explanation is not included in the text. No historical test, performance evidence, or caveats are provided, so the material is best treated as a compact formula reference rather than a complete trading method.

Key ideas

• The indicator starts with the midpoint of each bar’s high and low.
• The Awesome Oscillator is computed as the difference between two moving averages of that midpoint.
• The Accelerator Oscillator subtracts a moving average of the Awesome Oscillator from the oscillator itself.
• The note gives no trading rules, parameter recommendations, or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.