HOW TO use the Acceleration Bands HTF indicator

2 Mar

You can access this indicator HERE:

For details about the indicator, please see the indicator's description.

This idea is about the use of it.

You always want to go with the trend and trade into the direction that "accelerates" according to the indicator.

When the price accelerates, it is more likely to continue than to reverse.
Also, the volatility will be much greater (momentum) to the acceleration direction.
All the explosive moves happen outside of the acceleration bands.

You can go over many charts and see that the indicator methodology is aligned with good trading principles of great traders such as Darvas Box Trading, and Jesse Livermore entries, and also SMC.

2 Mar

Not

Here is a Darvas Example:



Please note, that all the methods mentioned above, are methods that work on trading environment, so you want to know when it is more likely to be a trend, and avoid the ranging motion (inside the acceleration) period.

2 Mar

Not

Here is Jesse Livermore Example:



Please note, that Jesse Livermore, waited for price to get into the edges of the stock range and then he trades the breakout to the acceleration side, in the idea that the stock will accelerate and not look back what he calls "the stock is acting right".

2 Mar

Not

Both of the traders mentioned that expensive and get more expensive...

That is their way to say... when you start to accelerate... you speed faster... and price doesn't look back...

At those specific times, you can put a very tight stop, so your position will yield very high reward in relation to your risk.