The ACD Method

Quote from Maverick74:

MBF, the number lines have been very strong in a lot of sectors and in the indices they have been moderately strong. I don't know why you would think the market should sell off. What are you basing that on? The number lines have been spot on all year. They have led the market higher and lower. In fact, right now as I type this, the 5 day rolling in the Russell is +10!!!!! Maybe your number lines are different but they are spot on right now. The number lines should be used in conjunction with the ACD levels, not in isolation.
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Here are my 30 day number lines for the indices:

SPY +6

IWM +11

QQQ -3

DIA +5

The Q's got hit on some earnings names but overall, this market is holding a nice bid.
 
Hi Mav,

I did not mean number lines are showing weakness right now.

I remember In Feb/March there were weeks when numbers lines

were week but bonds kept going up, equities kept going and

typically bond market is ahead in terms of giving clues into

things to come.

I keep hearing ( plus kept thinking ) what does bond market know

that rest of us do not know.

Point i was trying to make that when i started using 30 days number

lines a year ago, i just took them at face value. I did not use

them in conjunction with ' WHAT DID NOT HAPPEN IS MORE

IMPORTANT THAN WHAT HAPPENED". Jim Dalton.

Attached is 30 days number lines for S&P, metals, softs etc.

There are some examples where market is performing as shown

by number lines and then there are some examples where

price action is not aligned with 30 days number line.


On a separate note, i get more excited when 30 days number line

first hits +9 and maintained it for 2 consecutive days.
 
Here is 30 days number line .

I am still not 100% sure how to use number lines when values are at 24, 24, 26 etc.

For the time being i just focus on when they hit +9 for the first time

after being 0, +1 etc.

Looks like Nat gas may hit +9 soon.
 

Attachments

Quote from mfbreakout:

Here is 30 days number line .

I am still not 100% sure how to use number lines when values are at 24, 24, 26 etc.

For the time being i just focus on when they hit +9 for the first time

after being 0, +1 etc.

Looks like Nat gas may hit +9 soon.
More...

MFB, thanks for posting the file! Just so I am reading this right, is the 30 day number line for ES +9? Is it the 30 day cum ABCD line? I never know which line is which when I look at that.
 
Quote from mfbreakout:

Here is 30 days number line .

I am still not 100% sure how to use number lines when values are at 24, 24, 26 etc.

For the time being i just focus on when they hit +9 for the first time

after being 0, +1 etc.

Looks like Nat gas may hit +9 soon.
More...

As far as how I deal with the +24 numbers, the 5 day rolling really shows the change in momentum and that is precisely why I created that.
 
Quote from mfbreakout:

Hi Mav,

I did not mean number lines are showing weakness right now.

I remember In Feb/March there were weeks when numbers lines

were week but bonds kept going up, equities kept going and

typically bond market is ahead in terms of giving clues into

things to come.
More...

Actually, when we got up to 1400 the first time in the ES I was commenting on here that the number lines were not confirming the price action in the ES and sure enough, we corrected 75 handles over the next 2 weeks. Then the number lines started to firm up really fast when we tested the QTR A down twice and sure enough we got a nice bounce. The number lines seem to lead the price action because you start seeing more and more failed A ups at the swing highs. The number lines start to drop pretty fast even though price is hanging around the highs.
 
Quote from mfbreakout:

Here is 30 days number line .

I am still not 100% sure how to use number lines when values are at 24, 24, 26 etc.

For the time being i just focus on when they hit +9 for the first time

after being 0, +1 etc.

Looks like Nat gas may hit +9 soon.
More...

As a daytrader the 30 days arent going to help you alot...might be more useful to look at it through another lens ;).

Lets say you are trading the energy complex, you could have rolling 5 day to see how they are all stacking up ;),
 
Can anyone make sense of the number line attachment MBF posted? I tried looking at the soybeans number since I felt that was by far the strongest product right now and none of those numbers listed were strong. Anyone have any ideas?
 
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