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Don't thank me. Do you understand? :) Seriously, this is a critical concept to understand and I've found that people who think they understand ACD and I bring this up and they clearly don't get this. It's not only critical to understanding ACD but also to finance and economics in general.

Nice pop on the far end of the yield curve today.

Robert...who says your threshold has to be 9? Why can't it be 5 or 8 or 20? You guys can and SHOULD adjust these settings. Just as you can tweak the OR and the A levels, you can tweak the number line threshold. But even aside from that, the main point I'm trying to get at here is you need to...

We have confirmed negative number lines in 3 indices trading into the monthly A ups after huge spikes off the lows and a few of my proprietary risk indicators are issuing warning signs. The QTR A up in the ES is just a few handles higher as well.

I think today might be the swing high in the ES.

I would not be too quick to buy this dip in WTI.

You're a true artist King. :)

Here is a hint. ACD is a window into the market. It's not about drawing lines or magic levels or having the right count. It's about recognizing relative value and marginal change. When you measure marginal change, the actual numbers are less important then the actual change itself. Many...

Natty flirting with moving into backwardation on the front spread. Just as she confirms on the 30 day.

Something wicked this way comes...

Copyplus is very close. He is correct about the consistency thing. And he is very close with the relative comparison thing.

This was the QTR entry on the failed A down.

The teacher is not going to answer this one. I'm going to wait for someone to correctly say it and I'll confirm it. This goes to the heart of the ACD methodology. If you don't understand this concept,it will be very hard to make money using this approach. Or really any approach in trading...

Most of the steepening in the yield curve last week was on the short end of the curve.

I use 5 min OR for intra-day. For the purpose of number lines you could use 10 seconds or 3 hours, it won't matter. Can you tell my why? Yes, it's a pop quiz.

The two best books on theory are "Option Volatility and Pricing" and "Option Market Making". After you read those two, all of the Augen books are great on the more subtle aspects of option trading. I cannot stress to you enough how important it is to learn and understand the theory cold...

And here is the same for EUR/USD.

Here is a snapshot of USD/JPY both historical and implied vol as well as the risk reversal measured against price.

And here are the 25 delta risk reversals for the major pairs.

Here are the ATM implied volatilities for the major FX pairs.