This is a simple indicator that works very well to spot divergence and so changes in the trend.
The speed (histogram) is what is commonly called the “momentum”. The acceleration (yellow line) is the speed of the speed and is, in my opinion the perfect indicator, to spot divergences. Divergences are usually used to spot the possibility of a trend change.
When you drive your car, and want to make a turn, you need to reduce your speed. You do that by pushing the brakes. So while the speed is slowing down, the acceleration has already became negative. So the acceleration usually gives you information of a trend change much before the speed does. Sometimes too much, so be careful using it and never use it alone.
Below are two example of the indicator, a regular version and a smoothed version (using Hull Moving Average). The yellow line is the acceleration and the blue histogram is the speed of the price.
And here is how well and easy it can spot divergences:
The following images show you a comparison of the price speed and acceleration indicator vs other commonly used indicators to spot divergences (purple line is the acceleration and the grey histogram is the speed):
Here’s an example of the possible entries (candles with grey background) simply using the price speed and acceleration indicator to spot divergences and trendlines break:
You can freely download the indicator from here:
Right click the link and select “Save as”. Copy the file into your “MT4 installation dir/experts/indicators” folder. Restart MT4 and you should see the indicator listed under “Custom Indicators” section of the Navigator window.