The ACD Method

Huge number of stocks with rising positive numbers and confirms

A zero or +2 will confirm DIA tomorrow

A -3 or better will confirm HYG tomorrow

Silver (SLV) confirmed today

XLB will confirm tomorrow

XLE will confirm tomorrow

A -3 or better will confirm XLI tomorrow
 
In addition using the standard numberline scoring system, I keep track of a separate numberline that adds/removes 1 point when a move of +/- 3% or more occurs in an underlying stock, and use tomorrow's open as the closing price (to account for overnight gaps).

So for example, if a stock makes a good C up and ends up +6% for the day (as of tomorrow morning's open), that days score would be 5 instead of the standard 4. I do this because if a stock has a +20 numberline and then posts terrible earnings and starts tanking, I want the numberline to quickly start reflecting this bearishness, which this custom line does.

I won't enter positions solely off this, but use it as a confirmation tool. If my standard numberline is giving a stock a +12 score, but the custom line is only saying +3, I wont be as bullish.

Just passing at along.
 
SteveM said:
In addition using the standard numberline scoring system, I keep track of a separate numberline that adds/removes 1 point when a move of +/- 3% or more occurs in an underlying stock, and use tomorrow's open as the closing price (to account for overnight gaps).

So for example, if a stock makes a good C up and ends up +6% for the day (as of tomorrow morning's open), that days score would be 5 instead of the standard 4. I do this because if a stock has a +20 numberline and then posts terrible earnings and starts tanking, I want the numberline to quickly start reflecting this bearishness, which this custom line does.

I won't enter positions solely off this, but use it as a confirmation tool. If my standard numberline is giving a stock a +12 score, but the custom line is only saying +3, I wont be as bullish.

Just passing at along.
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I would be careful with this. The number line is not really a measure of how strong or weak a product is but rather a measure of trend. For example, I have two stocks, A and B. A has a +30 number line and B has a +10 number line. The +30 is not necessarily a stronger stock. It merely has a smoother trend. In many cases the stock with a +30 number line might be up 5% since confirm while the +10 stock might be up 30% since confirm.

In fact one of the interesting and robust features of the number line is how it can increase in value when stocks are going down! I don't know of any other quantitative measure that replicates that.
 
Maverick74 said:
I would be careful with this. The number line is not really a measure of how strong or weak a product is but rather a measure of trend. For example, I have two stocks, A and B. A has a +30 number line and B has a +10 number line. The +30 is not necessarily a stronger stock. It merely has a smoother trend. In many cases the stock with a +30 number line might be up 5% since confirm while the +10 stock might be up 30% since confirm.

In fact one of the interesting and robust features of the number line is how it can increase in value when stocks are going down! I don't know of any other quantitative measure that replicates that.
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Mav the more and more I use number lines, the more I think that there biggest strong point has to be when used for relative analysis and spotting marginal change. I have not found a better method than.

This is something I used to be useless at pre ACD, but is now one of the most important parts of my trading.
 
redbaron1981 said:
Mav the more and more I use number lines, the more I think that there biggest strong point has to be when used for relative analysis and spotting marginal change. I have not found a better method than.

This is something I used to be useless at pre ACD, but is now one of the most important parts of my trading.
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Right...benchmarking is a critical part of the analysis. ACD allows one to normalize data and get rid of the noise in the data. Something that is just not possible with standard charting.
 
Maverick74 said:
I would be careful with this. The number line is not really a measure of how strong or weak a product is but rather a measure of trend ... In fact one of the interesting and robust features of the number line is how it can increase in value when stocks are going down! I don't know of any other quantitative measure that replicates that.
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Has potential for a divergence indicator.
 
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