Oil making a run at the A up at 99.00.
Has to get through this pivot first.
Has to get through this pivot first.
The ACD Method
- Thread starter sbrowne126
- Start date
I love when guys come on CNBC and get bearish on Crude. I for the life of me can't understand why so many so called commodity guys don't look at price action. Yes, Crude has gone from 75 to 100 pretty quickly but more importantly, you have to observe how price is "acting" at these levels. WTI is actually acting really well here with ES near the lows of the day.
One of the drivers of WTI has been the spread trade between Brent and WTI. This spread is starting to collapse. And all the spreaders are short WTI and long Brent. The more this spread collapses, the more buying pressure on WTI.
I am attaching the spread chart of Brent over WTI.
One of the drivers of WTI has been the spread trade between Brent and WTI. This spread is starting to collapse. And all the spreaders are short WTI and long Brent. The more this spread collapses, the more buying pressure on WTI.
I am attaching the spread chart of Brent over WTI.
BTW, here is the Brent/WTI spread over the last week. As you can see, getting crushed. This means traders are buying WTI and selling Brent to get out of the spread. This has been putting a bid under WTI.
Hi everybody, long time lurker posting for first time here.
I'm a novice trader, been trying different stuff with mixed results until I realized I needed a method or approach if a wanted to achieve reliable results over time and that brought me here. I don't want to bore you with irrelevant stuff but I think that maybe is important for you to know where I come from.
Long history short, I liked what I read here, bought and read the book and this weekend spent some time programming an ACD indicator to help me to analyze the market through this lens. Later I did some basic research with different stocks and ETFs using different parameters for the OR, A Levels and so on... and although I couldn't find clear signals to build a system (at least not yet) I think it gives meaningful levels to take good R/R trades.
Today I went live trying to put it into practice using a small position on the SPY, I added a screenshot where you can find my levels and where I went short and where I covered (I have to say I arrive at home from work around 18:30 London time, 13:30 market time, so I can't play the larger moves in the morning)
Although it's too soon to draw any conclusions and I need to spend more time trying to come up with a system I want to say I like ACD as a framework and feel myself more confident trading this way than looking at 5 different indicators giving me conflicting signals or placing my entries and stop at obvious levels where the bus people get shaken off.
I'm a novice trader, been trying different stuff with mixed results until I realized I needed a method or approach if a wanted to achieve reliable results over time and that brought me here. I don't want to bore you with irrelevant stuff but I think that maybe is important for you to know where I come from.
Long history short, I liked what I read here, bought and read the book and this weekend spent some time programming an ACD indicator to help me to analyze the market through this lens. Later I did some basic research with different stocks and ETFs using different parameters for the OR, A Levels and so on... and although I couldn't find clear signals to build a system (at least not yet) I think it gives meaningful levels to take good R/R trades.
Today I went live trying to put it into practice using a small position on the SPY, I added a screenshot where you can find my levels and where I went short and where I covered (I have to say I arrive at home from work around 18:30 London time, 13:30 market time, so I can't play the larger moves in the morning)
Although it's too soon to draw any conclusions and I need to spend more time trying to come up with a system I want to say I like ACD as a framework and feel myself more confident trading this way than looking at 5 different indicators giving me conflicting signals or placing my entries and stop at obvious levels where the bus people get shaken off.
Another successful test of the weekly A down this morning in the ES. We bounced 9 handles off that level. The upside target is now 1272.50 this week.
CL continues to hold strong. Outstanding price action. I would not be trying to sell oil under any circumstances.
CL continues to hold strong. Outstanding price action. I would not be trying to sell oil under any circumstances.
Welcome to the thread. Congrats on your first ACD trade.
Thanks Maverick,
My idea is use ACD intraday to get a quick feeling for the method as fast as possible, but actually I would like to improve my indicator (maybe coding a full system out of it) to be useful in longer timeframes given that I can't trade full-time.
Ah, I forgot to tell, in my graph the orange lines are the OR (i'm using 20mins), purple is the daily pivot and in green my A Levels. My approach to plotting A levels it's a bit naive and I'm not sure if it's going to perform well in the long term but they worked quite well on my first live trade.
My idea is use ACD intraday to get a quick feeling for the method as fast as possible, but actually I would like to improve my indicator (maybe coding a full system out of it) to be useful in longer timeframes given that I can't trade full-time.
Ah, I forgot to tell, in my graph the orange lines are the OR (i'm using 20mins), purple is the daily pivot and in green my A Levels. My approach to plotting A levels it's a bit naive and I'm not sure if it's going to perform well in the long term but they worked quite well on my first live trade.
welcome your pivot number is off by .20 cents. You can do this manually at the end of the day. h + l + c / 3. If you are new you should only trade spy after if has moved 1% up or down this will keep you out of chop, high prob of a pivot touch today.
http://www.mypivots.com/dailynotes/symbol/427/-1/sp-500-trust-etf