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CL Redux
- Thread starter schizo
- Start date
Have a good rest of the day everyone.
Another question about ACD that I haven't found the answer to...
When it says the market should trade above the OR and stay above it for half the OR time, I'm hoping for some clarification on that. What do you do if price breaks back into the OR briefly and then rises back above it?
For example let's say I have a 30 min OR and price breaks above it. Ok, I start my 15 min countdown. After 7 mins, price breaks back below the OR for a minute or so, then rises back above it. Do I restart my 15 min count when price rises back above the OR, or do I keep it the same since the violation was so brief? Thanks.
When it says the market should trade above the OR and stay above it for half the OR time, I'm hoping for some clarification on that. What do you do if price breaks back into the OR briefly and then rises back above it?
For example let's say I have a 30 min OR and price breaks above it. Ok, I start my 15 min countdown. After 7 mins, price breaks back below the OR for a minute or so, then rises back above it. Do I restart my 15 min count when price rises back above the OR, or do I keep it the same since the violation was so brief? Thanks.
Quote from dv4632:
Another question about ACD that I haven't found the answer to...
When it says the market should trade above the OR and stay above it for half the OR time, I'm hoping for some clarification on that. What do you do if price breaks back into the OR briefly and then rises back above it?
For example let's say I have a 30 min OR and price breaks above it. Ok, I start my 15 min countdown. After 7 mins, price breaks back below the OR for a minute or so, then rises back above it. Do I restart my 15 min count when price rises back above the OR, or do I keep it the same since the violation was so brief? Thanks.
According to Mark Fisher trading just A up or A down gives one only 3% edge. Combining daily pivot, 3 day rolling pivot range with A up or A down gives one 8-10% edge. Then how wide 3 day rolling pivot is , relationship to price etc..
But to answer your question, once price has stayed above A up level as in you example for 7 minutes, A up has been confirmed. Price pulls back into OR ( which it does lot of times) you do not start the count down again. Experience will guide a trader as to how to treat price moving back into OR.
On strong days up or A down , price never pulls back into OR. Strong A up or A down only happens about 30% of the time. rest of the time , we have failed A up or A down, weak A up/A down, etc..
Tuesday and Wednesday were examples of strong A up days. Mark Fisher recommends putting paddle to the medal on these kind of days. Trying to fade these kind of days is a loosing proposition in general.
Quote from mfbreakout:
According to Mark Fisher trading just A up or A down gives one only 3% edge. Combining daily pivot, 3 day rolling pivot range with A up or A down gives one 8-10% edge. Then how wide 3 day rolling pivot is , relationship to price etc..
But to answer your question, once price has stayed above A up level as in you example for 7 minutes, A up has been confirmed. Price pulls back into OR ( which it does lot of times) you do not start the count down again. Experience will guide a trader as to how to treat price moving back into OR.
On strong days up or A down , price never pulls back into OR. Strong A up or A down only happens about 30% of the time. rest of the time , we have failed A up or A down, weak A up/A down, etc..
Tuesday and Wednesday were examples of strong A up days. Mark Fisher recommends putting paddle to the medal on th kind of days. Trying to fade these kind of days is a loosing proposition in general.
Here is a chart of Wednesday Price action.
http://www.screencast.com/t/n4Gchk85
Quote from mfbreakout:
Here is a chart of Wednesday Price action.
http://www.screencast.com/t/n4Gchk85
It looks like your OR is from 8:30 to 9:15 or so, I can't quite tell -- or did you mention this before? These are the cyan lines, but what about the two magenta lines in between? This looks like the first 5 minutes of the RTH session--what are these used for? And finally, your "A" looks like 10 ticks higher than the cyan line-- have you found through your own testing that this works well, or is this from Fisher?
Thanks for being on the thread mfb--nice to have you here.
Quote from dv4632:
Another question about ACD that I haven't found the answer to...
When it says the market should trade above the OR and stay above it for half the OR time, I'm hoping for some clarification on that. What do you do if price breaks back into the OR briefly and then rises back above it?
I just read this from their web site--it answers this question and many I had been wondering since MFB has been talking about ACD:
http://thelogicaltrader.net/chapter.pdf
.Quote from Visaria:
I've acquired the logical trader book and intend to read it today.
Quick question: if there is an A up, at what price do you enter? If you have to wait for 1/2 of the time of the OR, the market could be smashing up, your entry could be pretty high!
Price can be moving up all it wants. question is always where would be stop loss? Thus, I wait for pullback and try to enter as close to OR and place stop loss 10 ticks below OR high in case of A up.
Quote from JoshDance:
It looks like your OR is from 8:30 to 9:15 or so, I can't quite tell -- or did you mention this before? These are the cyan lines, but what about the two magenta lines in between? This looks like the first 5 minutes of the RTH session--what are these used for? And finally, your "A" looks like 10 ticks higher than the cyan line-- have you found through your own testing that this works well, or is this from Fisher?
Thanks for being on the thread mfb--nice to have you here.
Ignore magenta lines- those lines represent something I am testing. OR is 8.30 to 9.15 and A up or A down is 8 ticks. C value 13 ticks for CL.
Traders use OR based on their style and preference. 5 minutes , 10 minutes etc.. from 9 am open.
Quote from mfbreakout:
.
Price can be moving up all it wants. question is always where would be stop loss? Thus, I wait for pullback and try to enter as close to OR and place stop loss 10 ticks below OR high in case of A up.
So as an example, say we calculate point A to be 90.00. We watch as price hits and goes through 90.00. We wait for the correct amount of time to pass, say 10 mins. At the end of 10 mins the price is now 91.00. Would we buy at 91.00?