The ACD Method
- Thread starter sbrowne126
- Start date
Oh man. I feel sorry for all the hedge funds that didn't cover their financial shorts. This is going to be a very painful December for them.
A tape like this is great for price action traders, horrible for chart traders.
Updated number lines:
ES -1
CL -6
ZB +7
6A -1
6E -8
GC -2
NG +2
HG +1
As you can see, the price action is coming through loud and clear in Oil and the Bonds. Also showing the relative weakness in the Euro and the choppiness in Gold.
ES -1
CL -6
ZB +7
6A -1
6E -8
GC -2
NG +2
HG +1
As you can see, the price action is coming through loud and clear in Oil and the Bonds. Also showing the relative weakness in the Euro and the choppiness in Gold.
So I'm trying to sort out the number line values. I've read the parts of the book several times and written out the scenarios regarding whether or not A's were made or failed, whether C's were made or failed, and where the close is in relation to the opening range.
What I am trying to do is figure out what the value is for an individual event inside the sequence.
For example, an A UP with a close above the O.R. is a + 2.
Does that mean that an A UP gets +1 and a close over the O.R. gets a +1 ?
Or does an A UP get a +2, and since the close didn't cross to the other side of the O.R. that gets a value of zero?
There are multiple ways the values listed in the book can be obtained for each of the scenarios listed. I'm trying to build an algorithm of the events inside the scenarios.
A DOWN, CLOSE UNDER O.R. -2
A UP, CLOSE OVER O.R. +2
A UP, C DOWN, CLOSE UNDER O.R. -4
A DOWN, C UP, CLOSE OVER O.R. +4
A UP, FAILED C DOWN, CLOSE INSIDE O.R. +3
A DOWN, FAILED C UP, CLOSE INSIDE O.R. -3
FAILED A UP, CLOSE UNDER O.R. -1
FAILED A UP, A DOWN, CLOSE UNDER O.R. -3
FAILED A UP, A DOWN, CLOSE INSIDE O.R. -1
FAILED A UP, FAILED A DOWN, CLOSE INSIDE O.R. 0
FAILED A DOWN, CLOSE INSIDE O.R. +1
FAILED A DOWN, CLOSE ABOVE O.R. +1
FAILED A DOWN, A UP, CLOSE ABOVE O.R. +3
FAILED A DOWN, A UP, CLOSE INSIDE O.R. +1
A UP, FAILED C DOWN, CLOSE OVER O.R. +2
A DOWN, FAILED C UP, CLOSE BELOW O.R. -2
A UP, CLOSE INSIDE OR BELOW O.R. 0
A DOWN, CLOSE INSIDE OR ABOVE O.R. 0
What I am trying to do is figure out what the value is for an individual event inside the sequence.
For example, an A UP with a close above the O.R. is a + 2.
Does that mean that an A UP gets +1 and a close over the O.R. gets a +1 ?
Or does an A UP get a +2, and since the close didn't cross to the other side of the O.R. that gets a value of zero?
There are multiple ways the values listed in the book can be obtained for each of the scenarios listed. I'm trying to build an algorithm of the events inside the scenarios.
A DOWN, CLOSE UNDER O.R. -2
A UP, CLOSE OVER O.R. +2
A UP, C DOWN, CLOSE UNDER O.R. -4
A DOWN, C UP, CLOSE OVER O.R. +4
A UP, FAILED C DOWN, CLOSE INSIDE O.R. +3
A DOWN, FAILED C UP, CLOSE INSIDE O.R. -3
FAILED A UP, CLOSE UNDER O.R. -1
FAILED A UP, A DOWN, CLOSE UNDER O.R. -3
FAILED A UP, A DOWN, CLOSE INSIDE O.R. -1
FAILED A UP, FAILED A DOWN, CLOSE INSIDE O.R. 0
FAILED A DOWN, CLOSE INSIDE O.R. +1
FAILED A DOWN, CLOSE ABOVE O.R. +1
FAILED A DOWN, A UP, CLOSE ABOVE O.R. +3
FAILED A DOWN, A UP, CLOSE INSIDE O.R. +1
A UP, FAILED C DOWN, CLOSE OVER O.R. +2
A DOWN, FAILED C UP, CLOSE BELOW O.R. -2
A UP, CLOSE INSIDE OR BELOW O.R. 0
A DOWN, CLOSE INSIDE OR ABOVE O.R. 0
ok maybe i was wrong seems like the acd method is something to be used in conjunction with a strategy. I still dont understand what it is but iit could very well be a money management system which is good. I just dont understand why it is so complex and why it needs 50+ pages to be explained. It is really hard to keep up with this thread as it moves so fast .
I'm sure some where in here is an explination of what it actually is
I'm sure some where in here is an explination of what it actually is
I modified the number line to fit my own criteria. Don't get caught up too much in the definition of each day. The idea is to assign a value that makes sense to you based on the price action of that day. My rating system is far more simpler then his.
Check out the book "The Logical Trader". The strategy is outlined in there pretty well. You can read most of it on google books for free. I posted the link earlier.