Accelerator Oscillator Zero-Crossing Strategy
Summary
This script turns the Accelerator Oscillator into a directional trading rule. It calculates the difference between a fast and slow simple moving average of the bar midpoint, then subtracts a fast moving average of that difference. The resulting oscillator is positive or negative according to whether the first difference is above or below its smoothed value. The strategy holds long when the oscillator is positive and short when it is negative, with an option to reverse those directions. Its histogram changes color according to whether the oscillator is rising or falling, and bar colors show the current position bias.
The document explains that the oscillator extends the Awesome Oscillator and is intended to signal changes in its momentum before the Awesome Oscillator itself. It provides source code and configurable fast and slow lengths, but no performance results, transaction-cost assumptions, or tested markets and timeframes. The position rule relies only on the oscillator's sign; there are no explicit stops, targets, or additional entry filters. The source author presents it for learning or paper trading, so it should not be read as evidence of profitability.
Key ideas
- The oscillator subtracts a fast moving average of the Awesome Oscillator-like difference from that difference itself.
- A positive oscillator value sets a long bias, while a negative value sets a short bias.
- An input can invert the long and short directions.
- Histogram color reflects whether the oscillator is increasing or decreasing, separately from the position signal.
- The document supplies no backtest evidence and advises educational or paper-trading use.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.