The ACD Method

[Maverick74]

my guess would be that he is talking about products that are primarily pit traded like the commodities, almost everything is part of globex now including the es obviously. In that context the true opening range would be the "pit" open and close which is 930 am eastern to 4 pm eastern time. Maybe Sir Maverick has some color on this. Fisher does go out of his way to state that the opening range should be derived from the native time. ie gold is traded on the east coast so you should use their time.

Correct, true opening ranges are products that are actually "opening"for trade, not continuous. Pretty much everything now is continuous.

 

[trader31]

This thread should become the 2nd edition of the book.

I am still going through this thread and found this posted by Maverick more than 3 years ago.

"confirmed A trades at the very minimum hit the ATR a majority of the time. "

And I thought I knew ACD having read the book and programming most of it

Anyway, a slight modification of my programming shows this to be true for CL even today at least for the past 2 months at the intraday time period.

Thanks again.

Maverick, when you said "hit the ATR" is that the ATR from the open of the day (or other trading period), the ATR from the top or bottom of the opening range (i.e. if a confirmed A is 20% of the ATR, it moves the remaining 80%) or a full ATR above or below the confirmed A? Many thanks.

 

[Maverick74]

Maverick, when you said "hit the ATR" is that the ATR from the open of the day (or other trading period), the ATR from the top or bottom of the opening range (i.e. if a confirmed A is 20% of the ATR, it moves the remaining 80%) or a full ATR above or below the confirmed A? Many thanks.

It depends on the product. For stocks, I use the ATR from the low to high. For futures it's the 24 hour period.

 

[kinggyppo]

first two weeks in cl nice breakout from a narrow range, zb getting bid up!

 

[kinggyppo]

this is a pic of cl

 

[oftrader]

Hello,

I trade CL exclusively. So far, I have focused only on the intraday levels and after I started reading this thread, a whole new world opened up for me as I mentioned in my previous post. I think I am getting a hang of the long term levels. I am going by the discussion in this thread and identifying logical ORs for Quarterly, Monthly and weekly periods.

I had a couple of questions for ACD practicing traders. Do the prior period A levels matter when the period resets? Meaning, does it matter if price fails at the prior week's A down for instance?

Also, I know everyone's levels are different. I am just trying to make sure I am not way off from everyone else so I will throw this question out there. Does anyone see a confluence of A down levels around 91.40-50 for CL? I haven't focused too much on quarterly levels, but from my limited research, I am seeing price fail at the current Quarterly and Weekly A down around 91.40. I am seeing the monthly A down at around 94. Maverick's post a few days ago suggested his Quarterly A down for CL was around 90.50 and I was worried that I am off a bit too much.

I am aware from reading this thread that focusing on one instrument is really not the best use of ACD but I am really small time and do not have enough capital to trade ACD the way most of you traders trade over here. My plan is to have the long term levels for CL to help me trade the smaller time frame. I am hoping that by having a clear macro picture, I might do better with my intraday trades.

Again, thanks very much for the open discussions. This has already helped me a lot.

CL has been long in my observation since I posted this. I am still new to this way of looking at charts so just sharing my observations/experience here but since the failed QTR A down it looked like it would bounce and break but hung above the mark and the now made a weekly A up yesterday.

Along the same lines, ES, after making 4 consecutive failed weekly A ups (+/- few ticks) has finally made a weekly A down today. In my observation, ES had been biased short since the last week of Dec.

I have nothing but my gratitude to offer to you guys for helping me see charts this way but hoping I can also contribute like you sometime in the future.

 

[Maverick74]

CL has been long in my observation since I posted this. I am still new to this way of looking at charts so just sharing my observations/experience here but since the failed QTR A down it looked like it would bounce and break but hung above the mark and the now made a weekly A up yesterday.

Along the same lines, ES, after making 4 consecutive failed weekly A ups (+/- few ticks) has finally made a weekly A down today. In my observation, ES had been biased short since the last week of Dec.

I have nothing but my gratitude to offer to you guys for helping me see charts this way but hoping I can also contribute like you sometime in the future.

Once the 5 day came off the negative values, the buy was legit. That is what the 5 day is there for. To keep you from catching a falling knife but also to greenlight you to take the fade.

 

[oftrader]

Once the 5 day came off the negative values, the buy was legit. That is what the 5 day is there for. To keep you from catching a falling knife but also to greenlight you to take the fade.

Thanks. Thats the next thing I am adding to my charts - the number line. I dont mind being slow at getting this as long as I get it right . Thanks for your help.

 

[Maverick74]

This GBP/AUD refuses to go down. It's been confirmed this whole time and sure enough, it's the only pair that has stuck out from the crowd.

The USD/MXN confirmed for me a few days and is trying to break through the QTR A up. Keep an eye on this one. The peso has been breaking down now for months. All it needs is a good push.

 

[Maverick74]

Thanks. Thats the next thing I am adding to my charts - the number line. I dont mind being slow at getting this as long as I get it right . Thanks for your help.

Well, there is no "right". It's about helping you see the market more clearly and finding patterns. Once you understand how all the tools work and see how they interact with each other it's like going to eye doctor and finding out you need glasses and once you put them on, the entire world becomes clear for the first time.