Quote from Maverick74:
All products go through choppy cycles and all products go through trending cycles. This is why it's very important to make sure you have a way to quantify what cycle you are in. I would be hard pressed for anyone to pull up a chart of EUR/JPY and tell me it's choppy now. Both intra-day and long term the move has been astounding. But then it will settle down and chop around for a month or two.
Gold for example is dead right now. But that wasn't the case a year ago where it broke out every single day in a straight line. You'll notice energy products like this as well. Oil and gas will have a nice smooth move then go no where for months. I think too often traders get too caught up in picking direction and not picking the right cycle. If you get direction right and cycle wrong, you probably will lose money.
The beauty of ACD is that since it's volatility based, it's almost completely cycle based. Direction is quantified internally through number lines vs looking at a price chart. It's a very different approach most TA. In fact, it's probably completely opposite.
