Hello guys. I'm trying to figure out how to assign a value to the day for the macro number line. I went over all 26 examples Mark gives in his book in chapter 4 ("Macro ACD"). For the most part everything seems clear, but I found a contradiction between examples 15-16 and 25-26. For the start, I'm pasting my notes describing each example:
(Chapter 4, figures 4.1-4.26)
1. A up + no B + close above OR = +2
2. A down + no B + close below OR = -2
3. A up + no B + no close above OR = 0
4. A down + no B + no close below OR = 0
5. A up + no B + close above A up = +2
6. A down + no B + close below A down = -2
7. C up + close above OR = +4
8. C down = -4 (should close below OR?)
9. C up + close above OR = +4
10. C down + close below OR = -4
11. C down + close in OR = 0
12. C up + close in OR = 0
13. C down + D = 0
14. C up + D = 0
15. A up + B + failed C down + close in OR = +3
16. A down + B + failed C up + close in OR = -3
17. failed A up + A down + no B + close below OR = -3
18. failed A down + A up + no B + close above OR = +3
19. failed A up + A down + close in OR = -1
20. failed A down + A up + close in OR = +1
21. failed A up + no failed A down + close below OR = -1 (should be "in or below OR"?)
22. failed A down + no failed A up + close in or above OR = +1
23. failed A up + failed A down + close in OR = 0
24. failed A down + failed A up + close in OR = 0
25. A up + B + failed C down + close above OR = +2
26. A down + B + failed C up + close below OR = -2
Examples 15-16 and 25-26 show a good A and a failed C scenario. Then if the close is in OR, the value is 3, but if the close is above/below OR, then the value is only 2. This seems illogical, as price closing above/below OR shows a higher degree of bias than a close inside OR. How do you guys assign a value in these scenarios?
Hello Test-User,
My book is upstairs and I'm waaaay to Sunday night lazy to go get it.
I made a response post back on 1/31/15 and perhaps it will be useful:
I was curious to get some perspective on how others would score particular days. 1) How would you score a day that makes a confirmed A-up, later trades below the OR to make a C-down, but then closes above the A-up? 2) How would you score a day that makes an A-down, trades above the C-up, but fails (due to limited time), trades back below A-Down, but later makes a C-up and closes above the OR? I know there are nuances here, but was just curious generally speaking. Thanks
Hello trader31,
The first rule of NL fight club is: Anything in the OR is a zero. Figures 4.14, 4.15, 4.18, 4.19, and ½ of 4.21 are incorrect (this was confirmed to me from a Fisher rep). That is, they closed in the OR and that’s always a 0.
With the above in mind, here’s the simple rule, in my words, to deal with your examples: When you get a confirmed C in one direction, and then price crosses back through and out the OR in the opposite direction, it’s a “Point D” and the daily NL is a zero.
From Fisher’s book:
“Point D is the price at which your bias shifts to neutral and is your stop after the market has already established a C in of direction. Once Point D has been hit, the trader has been chopped up enough for the day and should walk away from that market for the rest of the trading day.”
Your first example is a NL zero. After making a C Down price crossed back through the OR and hit the D Point.
Your second example is a +4. After making a C Up price stayed above the OR until the close.
