Stocks are probably 100 times easier then crude if only for the fact that when you walk into the casino, you get to pick the table you sit down and play at. With crude, you sit at the same table every day.
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The ACD Method
- Thread starter sbrowne126
- Start date
Stocks are probably 100 times easier then crude if only for the fact that when you walk into the casino, you get to pick the table you sit down and play at. With crude, you sit at the same table every day.
Quote from RCG Trader:
Ohhh, okay, I see my mistake. No this was not one trade. It was about 10 trades. I get it. But I have never been good at doing the journal thing. So what I came to convey is that if traders look for this kind of PA then it is probably a good trade. I did what you and Fish suggested and started following a lot of pairs and taking only those setups that met what I think a good set up is. A tremendous improvement in my account. My biggest win was a 5 fold increase in twenty days, but of course I could not hold that because it was discretionary and had no real method. Now, I have a solid increase with a method with concrete rules. Any trader with experience can do better than a bank, and this is step one. But what I do is I check pairs for a price action setup based on ACD. It has two bars to play out. If not, next trade. I follow all of the world economies, so it is a bit hectic. There are other nuances as well but the basic premise is that good price action is the good A thru the pivot. If traders focus on that, they will make money.
Quoting Mark Fisher from the book on page 57 " Going long at a Point A up after the market trades through the pivot increases your confidence to make the trade. Putting your stop just below the bottom of the pivot range minimizes risk".
If one has daily pivot tracker value , 30 days number line, where did price closed yesterday in reference to daily pivot range, daily pivot etc and have above mentioned set up as shared by RGC , it's a joy to watch when this set up plays out.
Quote from Maverick74:
Stocks are probably 100 times easier then crude if only for the fact that when you walk into the casino, you get to pick the table you sit down and play at. With crude, you sit at the same table every day.
Agreed. It is probably easier for some one with your experience to find new stocks every day to trade. As Steve Cohen of SAC capital said " Problem with most of the traders is one day they trade aapl, next day NFLX and third day PCLN and in the process never developing expertise in one industry. In our firm everyone develops core competency in one sector and that's all they trade".
Having quoted Steve Cohen, I see enough traders at SMB Capital in New York day trade new stocks every day ( stocks with news, earnings or some other form of catalyst- they by the way do not use ACD system) very successfully day in and day out. But these traders have lot of screen time and experience behind them.
I just found it easier for myself to just focus on crude Oil and get as many nuances cleared up as possible.
Like mark Fisher says , once a trader gets comfortable with his/her ACD approach, then anything with VOLATILITY and LIQUIDITY is trade able.
I am not at that point yet.
Quote from Maverick74:
I thought I would post a chart giving you guys ideas on how you can use macro ACD. This is probably more for RCG since he trades currencies. This is what my macro FX grid looks like. It's a huge grid of all the FX pairs in rows by the same currency. So we have 4 rows. We have the Euro pairs, the Dollar pairs, Yen pairs and the Swissy pairs.
This is what my monthly grid looks like. It allows one very quickly to get a quick feel of where the real strength or weakness is. I want to note something on the dollar pairs. To make the visual easier, I inverted some of the pairs so all the dollar pairs have the dollar as the base currency. This allows your eyes to see the strength or weakness much clearer. For example, the 2nd row which are the dollar pairs, there are 3 currencies where the dollar is the non base currency (yen, loony and swissy). By using a - sign, the currency will invert on the chart.
So by taking a very quick glance at this chart, you can immediately see that the dollar is very strong against all the major pairs. The only pairs where there are no monthly A downs yet are the loony and the swissy. You can see this right away.
Organizing information is very important to trading. BTW, I only inverted the dollar pairs but certainly you could do this with all the pairs to make it easier to compare charts.
Thanks. This is very helpful.
Quote from Maverick74:
I have said this before and I will say it again. Let me be absolutely clear about this. I believe more in this next statement then I do that the sun will rise in the east tomorrow. If you are NOT already a profitable stock trader or a daytrader then no ACD levels will make you one period. I cannot stress this enough.
I have traded a lot of stock in my life. I understand the nuance of stock trading. If you have never been a good stock trader, then slapping opening ranges on your charts with A levels around them is not going to be effective. That's just the way it is. I know there are a lot of guys out there struggling looking for something. And I feel for them. Every trader has been there. But there is no magic with ACD.
I wasn't trying to imply that. By the very nature of ACD, everyones levels will be different. So there is no magical level.
I thought That the value of ACD is by using the different indicators in the methodology, as sort of layers, the more that they line up, the better your chances or success. And not only that, but I thought that how a stock or security behaves around certain levels or zones is the value of the system.
I was just bringing up an idea I had to look at how different stocks behave in the recent past.
Quote from mfbreakout:
I am not sure what do you mean by ACD indicator? www.thinkscripter.com has a suite of studies for TOS. I use TS opening range cloud to draw opening range, TS 3 day rolling pivot for 3 day rolling pivot ranges etc.. One time fee is $65.
www.mypivots.com, $30 a month , this forum provides a ton of very useful tool for ACD, market profile etc.. However, auto lines are drawn only for e-signal platform as the host of this forum uses e signal.
One can just note down daily pivot range, 3 day rolling pivot range etc.. if not using e-signal.
Thanks I found the one with the 3 day rolling pivot range...an indicator for the daily pivot range would be great too, but this definately helps.