Quote from kinggyppo:
Spy had a wide opening range on the ten minute chart, guess what? so did just about every chart in the index. Pull up the oex and look at each ten minute chart, they are just about all the same. What does reversion to the mean really mean to a new trader. Its hard enough to make money without all these complicated fu*&in investment banker terms. ACD is supposed to help you with your bias and keep you from being the "faceplate on the train" otherwise what is the point?
Somewhere in market wizards is a story about a guy starting on the floor back in the day, and he is getting out of a losing position over and over again. I forget the exact quote. This escaped me the first time I read it, the point was they were trying to induce muscle memory aversion to losses, wrong get out, wrong get out, trend, ride that till the end of time. All the great ones have that same ability and even some of the great ones blew out. Its all in Larry Hites' chapter in market wizards, that's all you need really. What's my bias for tomorrow right now, up/green why? cause the es is up that's why....
http://people.brandeis.edu/~yanzp/Study Notes/Market Wizards.pdf
No trading today, sitting in the library cramming at the moment. I agree these terms just complicate the issue. If the market makes the A-down or A-up, your bias changes. If I am looking to buy low, I am looking at the failed A-down. If the market breaks through the a level, my bias changes and I don't even think about buying, maybe even sell
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