I calculate the number lines for all commodities.
The ACD Method
- Thread starter sbrowne126
- Start date
I calculate the number lines for all commodities.
if anyone is trading any futures contract intra day, will appreciate if charts are posted for visual trader like me.
I do not need entries/exits, just contextual chart like i post.
Thanks,
I do not need entries/exits, just contextual chart like i post.
Thanks,
I modified an existing pivot indicator for ninja trader to plot the daily pivot zone as calculated in the ACD book. To use you need to change the pivot type to "fibonacci" as that is the type I modified.
Well, they are easy to spot. When the market is weak and confirming an A down, look for stocks that are making A ups. When the market is confirming A ups, look for stocks making A downs. You should see a lot of follow through when the index turns. I'm just trying to show you ways you can use the ACD signals intra-day for stocks.
Well, I brought up the average OR simply as another idea for a "layer"....
Fisher specifically talks in one of his videos about the value of relatively tight opening ranges, that initially look uneventful, then catch people off guard.
Also. I havent heard anyone mention this (or maybe I missed it, somewhere in the thread), but Fisher also mentions in the video using the previous days pivot ranges (I believe he said 9 days) and having the current day being the most narrow, or using the last 3 day vs the 9 day, as a favorable setup.
I guess its his variation of a Narrow range pattern. Anyone find value in this? Seems like it would be powerful, when combined with the numberline.
There are 2 pivot ranges to keep front and center along with daily pivot tracker and 30 days number line.
1) Previous day pivot range. For example for clz1 contract pivot range numbers for this morning are 88.23 and 87.49. This range is for day trading.
2) Rolling pivot range. Can be 3 days, 9 days etc.. One has to pick number of days and use them consistently. These are for swing trading . I use them for day trading also and find them good reference points. I use 3 day rolling pivot range.
3) Tight previous day pivot range along with 30 days number line points towards a VOLATILE day. Pivot tracker is a numerical value MF service assign to indicate tight pivot range. For example pivot tracker values starting last Thursday till Tuesday have been 0,12, 9,82.
I have seen pivot tracker values of as low as 0 and as high as 140. For month of September and Oct. for majority of days pivot ranges have been tight and thus gave lot of day trading opportunities in Crude Oil- WTI.
I thought this was interesting. I am in no way promoting or recommending anything on this guys website, that said there are some interesting ideas about order flow in the interview which are still relevant to todays trading. 
http://www.turtletrader.com/borish-baldwin.html
http://www.turtletrader.com/borish-baldwin.html
I'm following the German Bund Future (FGBL) for some time now, looking at intraday ACD values. What I noticed is that using my parameters (opening range 15min, 5 day ATR, ATR-multiplier 0.20) the market quite often reaches the A value (nearly) to the tick and reverts, providing a good fading opportunity (see attached charts, as I can only attach one chart per post I'll just split it up).
My values are not "optimized" for this specific market, I just used this values as starting point when looking into the ACD methodology. So this can mean two things:
(I) It's just chance that alone this month the market reverted several times exactly at my A value. Because obviously, when I would be using different values (let's say a multiplier of 0.25 instead of 0.20) the A values would be further away from the opening range and the market would reverse before reaching the A value in all these cases.
(II) By chance I chose values which (at least for the time being) work quite well with this specific market.
This raises the question: Do you optimize the parameters for the markets you are trading? Maverick stated a few times that he uses different values for different markets and that it depends on whether one is a trend follower or mean reversion type trader. But what I mean is more specific: Do you look at different parameter values and pick the one where historically the chance was quite high that the market reverts (in case you are trading a mean reversion approach)? And if you optimize them (e.g. change the multiplier), do you do this on an ongoing basis?
Here's todays action in FGBL (2011/10/19), reverted exactly at the A up
My values are not "optimized" for this specific market, I just used this values as starting point when looking into the ACD methodology. So this can mean two things:
(I) It's just chance that alone this month the market reverted several times exactly at my A value. Because obviously, when I would be using different values (let's say a multiplier of 0.25 instead of 0.20) the A values would be further away from the opening range and the market would reverse before reaching the A value in all these cases.
(II) By chance I chose values which (at least for the time being) work quite well with this specific market.
This raises the question: Do you optimize the parameters for the markets you are trading? Maverick stated a few times that he uses different values for different markets and that it depends on whether one is a trend follower or mean reversion type trader. But what I mean is more specific: Do you look at different parameter values and pick the one where historically the chance was quite high that the market reverts (in case you are trading a mean reversion approach)? And if you optimize them (e.g. change the multiplier), do you do this on an ongoing basis?
Here's todays action in FGBL (2011/10/19), reverted exactly at the A up