Calculate the AO baseline, then its deviation
Bill Williams Accelerator Oscillator adds a second calculation to AO. Use median price P = (high + low) / 2, calculate AO = SMA(P, 5) − SMA(P, 34), then AC = AO − SMA(AO, 5). The last average includes the current AO observation. These are price-unit differences, with no fixed upper or lower bound.
- Calling AC acceleration is a description of this filtered momentum calculation. It is not a literal second difference of price or proof that a price reversal will follow.
- The formula uses historical and current inputs. A developing bar can change its high, low and resulting AC before the close.
| Measurement | Comparison | What zero means |
|---|---|---|
| AO | Fast price average minus slow price average | The two price averages match. |
| AC | AO minus its own recent average | AO equals its recent average. |
| AC change | Current AC minus preceding AC | AC is unchanged, even if nonzero. |