The ACD Method

Quote from Maverick74:

Wow, you guys see ALTR and XLNX today? Smoking!

Those chips are on fire!
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I was going to ask about this, and these examples give me a good chance to. (they had large OR)

I have been looking at statistics on equities concerning OR/DailyATR ratios, and behaviors.

One thing I am noticing, is that alot of the time a large relative (volatile) OR, leads to a larger intraday move, and vice versa.

The reason I bring this up is that awhile back, I think an idea that was being kicked around was that looking for small intraday ratios perhaps led to better setups. (small being a ratio of < .20 or around there)

From what I have seen so far, small OR's usually lead to little action, and volatile/sloppy OR's lead to bigger intraday runs. So it seems kind of the reverse than what was suspected.

Can anyone comment on this or add any insight? B/c I have been looking to stay away from larger than usual OR's, but in hindsight it seems like those were the best opportunities, when I reivew each days activity on stocks.

(The only idea I can come up with is that finding small intraday OR's can be good candidates for moves that catch people off guard. Or perhaps failures off of an A up/down, to fade for a favorable R/R trade.)
 
Quote from mdl060374:

I was going to ask about this, and these examples give me a good chance to. (they had large OR)

I have been looking at statistics on equities concerning OR/DailyATR ratios, and behaviors.

One thing I am noticing, is that alot of the time a large relative (volatile) OR, leads to a larger intraday move, and vice versa.

The reason I bring this up is that awhile back, I think an idea that was being kicked around was that looking for small intraday ratios perhaps led to better setups.

From what I have seen so far, small OR's usually lead to little action, and volatile/sloppy OR's lead to bigger intraday runs. So it seems kind of the reverse than what was suspected.

Can anyone comment on this or add any insight? B/c I have been looking to stay away from larger than usual OR's, but in hindsight it seems like those were the best opportunities, when I reivew each days activity on stocks.

(The only idea I can come up with is that finding small intraday OR's can be good candidates for moves that catch people off guard. Or perhaps failures off of an A up/down, to fade for a favorable R/R trade.)
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Everything is relative. A stock that is in a strong uptrend that has been relatively quiet lately but is breaking out of a tight OR usually leads to great follow. You can also have a stock with a wide OR that does exactly the same thing but again, it's coming out of a quiet pattern over the previous days or weeks. So I don't think you can just look at one day in a vacuum.
 
Quote from mdl060374:

I was going to ask about this, and these examples give me a good chance to. (they had large OR)

I have been looking at statistics on equities concerning OR/DailyATR ratios, and behaviors.

One thing I am noticing, is that alot of the time a large relative (volatile) OR, leads to a larger intraday move, and vice versa.

The reason I bring this up is that awhile back, I think an idea that was being kicked around was that looking for small intraday ratios perhaps led to better setups. (small being a ratio of < .20 or around there)

From what I have seen so far, small OR's usually lead to little action, and volatile/sloppy OR's lead to bigger intraday runs. So it seems kind of the reverse than what was suspected.

Can anyone comment on this or add any insight? B/c I have been looking to stay away from larger than usual OR's, but in hindsight it seems like those were the best opportunities, when I reivew each days activity on stocks.

(The only idea I can come up with is that finding small intraday OR's can be good candidates for moves that catch people off guard. Or perhaps failures off of an A up/down, to fade for a favorable R/R trade.)
More...


Best way to see if wide or, narrow or etc.. will materialize is keeping track of 30 days number line along with daily pivot range, 3 day rolling pivot range etc..

Like Maverick74 said, it's all relative.


If anyone knows a programmer who can write a programme for me to keep track of 30 days number line along with a up/ a down levels etc.. for stocks, futures etc.. please let me know.
 
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