| Updated: September 15, 2025Accelerator Oscillator
This lesson will cover the following
- Explanation and calculation
- How to interpret this indicator
- Trading signals generated by the indicator
Developed by Bill Williams as an offshoot of the Awesome Oscillator, the Accelerator Oscillator measures the difference between the Awesome Oscillator and the 5-period moving average. The indicator reflects the rate at which the Awesome Oscillator changes and can therefore be used to detect trend reversals before they appear on the Awesome Oscillator itself.
If the Accelerator Oscillator moves above the zero line, it is considered a signal that upward acceleration will continue. Conversely, if it moves below the zero line, it signals that downward acceleration will continue.
Generally, a potential price surge is confirmed by two consecutive green bars with the Accelerator Oscillator above the centre line. A potential price decline is confirmed by two consecutive red bars with the Accelerator Oscillator below the centre line.
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- Regulation: NFA
- Leverage: Day Margin
- Min Deposit: $100
There is another way to interpret this indicator – look for signals when the Accelerator Oscillator is on the opposite side of the centre line. For instance, a trader may look to go long when the Accelerator Oscillator is below the centre line and go short when it is above the centre line. In both cases, however, further confirmation is required – at least one additional bar. Therefore, when the indicator is below the zero line and the trader intends to go long, at least three green bars must be present below the zero line. Conversely, when the indicator is above the zero line and the trader intends to go short, at least three red bars must be present above the zero line.
