The ACD Method

Quote from Maverick74:

The lower number would indicate more inside days in the market (failed A ups and A downs). Usually inside days lead to outsized moves. So if we had a long stretch of days where the market was coiling with no A ups or A downs, I would think we would be more then likely to get vol expansion going forward. Same theme along the lines of the narrowing pivots and tight opening ranges.

We'll see how this plays out in real time. Again, as a stand alone indicator it might be moderately useful, but when combined with the number line and the macro ACD levels, it could be golden.

Awesome Mav, totally makes sense.

Thanks
 
Although the number line is relatively strong, it may not be indicative of a strengthening market when so much action takes place overnight and we see these large gaps.
 
Quote from sarue:

Although the number line is relatively strong, it may not be indicative of a strengthening market when so much action takes place overnight and we see these large gaps.

Strong price action negates negative gaps and weak price action negates positive gaps.
 
Looks like NG may be able to test the daily A up now. Only question is what it does up there with that monthly this time...
 
Quote from Quon:

Looks like NG may be able to test the daily A up now. Only question is what it does up there with that monthly this time...

Usually when you test a level over and over again, it's going to break. NG acting very well.
 
Back
Top