According to Bill Williams’ trading system, the zone is formed by the combination of Accelerator Oscillator (AC) and Awesome Oscillator (AO). When they go up, we are in the green zone. When AO and AC bars are red, we are in the red zone. If one of the bars is red, while another is green, we are in the gray zone.
- When the current AC and AO histogram bars exceed the previous ones, the indicator is colored in green.
- If the current AC and AO histogram bars are below the previous ones, the indicator is colored in red.
- If АО and АС have different colors, the indicator is gray.
Green and red zones
The zone allows you to trade aggressively and adjust the balance line signal in various zones. You can also actively add to your current positions.
Gray zone
Gray bars indicate that the driving force has one direction, while acceleration is aimed in the opposite direction. This may mean that the market (both buyers and sellers) temporarily loses interest in maintaining the current direction. We do not add to positions if the indicator is gray.
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