The ACD Method

Box trading during Asian and European session. I only trade NY session but like to observe box trading during all time frames.

There is a reason " Level is a level till it gets broken" one of my favorite quotes from one of my mentor.
 

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Quote from mfbreakout:

Box trading during Asian and European session. I only trade NY session but like to observe box trading during all time frames.

There is a reason " Level is a level till it gets broken" one of my favorite quotes from one of my mentor.
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What do mean by box trading?
 
Quote from kinggyppo:

What do mean by box trading?
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When price stays within a box- again and again. I shorted CL @95.94 at 8 am with stop loss @96.01.

It's almost an hour now and price has not gone above 96. Made many attempts. I do not look at anything. I just put buy and sell order in.

Now NY session is ready to open and I just covered my short @ 95.42 @8.58 am.

Once price breaks above 96 or breaks down below 95, I will have to wait and identify a new trading box.

Break above 96 on Volume- 1st target will be daily pivot of 96.45. price breaks through pivot, next target will be 97.40 area and so on.

Similar price movement pattern to the down side, if 95 breaks down.


Since 8 am , we had ton of economic news. Seems like better than expected jobless numbers etc... Price did not break above 96. Came to 95.99 and sold off.

If, later price breaks above 96, i want to be part of that move.


In summary, only 2 price points are important to me 95 and 96. i will not take a trade on any other price in between unless A up or A down is confirmed.
 
Quote from Maverick74:

Simons isn't going to live forever. :)

A good price action action trader can see things that no chart, no fundamentals or machine can see. So if one can learn that skill, there is a long long edge that can't be taken away. I hope in 2012 to hone this skill better through these ETF spreads.
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Mav, what do you actually mean by "price action trading"? Something a la Al Brooks (e.g. http://www.amazon.com/Trading-Price...6510/ref=sr_1_1?ie=UTF8&qid=1323957444&sr=8-1), hence chart reading, or something more specific?

I often read the term "price action" here. I'd say every price action is visible in the charts, but you write "...that no chart, fundamentals or machine can see".
 
In the spirit of box trading, i took long @95.10 with stop loss @ 94.99.

Not ideal time for box trading but risk vs reward is there, otherwise one can stare at computer all day wondering what to do.

OR for me is 95.99 to 95.06. It's amazing how on many, many days OR frame the playground RULES perfectly.

When box trading outside - slow trading hours- I tend to book profits in increments of 40 ticks rather than waiting for full potential as anything can happen. Just lot of scale in and out but always at the edge of the box.

For A up today, cl has to stay above 96.08 for 20 consecutive minutes on some VOLUME.

Otherwise, will keep on trying Box trading.
 
Quote from flip:

Mav, what do you actually mean by "price action trading"? Something a la Al Brooks (e.g. http://www.amazon.com/Trading-Price...6510/ref=sr_1_1?ie=UTF8&qid=1323957444&sr=8-1), hence chart reading, or something more specific?

I often read the term "price action" here. I'd say every price action is visible in the charts, but you write "...that no chart, fundamentals or machine can see".
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No, I'm not referring to Al Brooks. Price action is about taking the price of a market and observing it's behavior in relation to something else. Could be a news item, like jobless claims, or could be news in a stock or a sector or macro news in Europe. Price action is about all the players at the card table throwing their cards down and showing you what they are holding.

Here is why it's not in the charts. Take ES for example. Say 1200 is a big support level. And ES opens at 1207. Some really really bad news comes out and ES takes out the support at 1200 and trades down to 1195, most chart guys get bearish because we broke a "key" support level. However, based on the news, you might have thought ES would be selling off much more but it's not. In fact, some sectors of the market are not even down and before you know it, some key stocks are now in the green. The chart guy is so focused on that key 1200 level that he is not watching everything around him. The adept price action trader is actually buying ES below that key break because he knows the market is going much higher. That is how you read price action.
 
Quote from Maverick74:

No, I'm not referring to Al Brooks. Price action is about taking the price of a market and observing it's behavior in relation to something else. Could be a news item, like jobless claims, or could be news in a stock or a sector or macro news in Europe. Price action is about all the players at the card table throwing their cards down and showing you what they are holding.

Here is why it's not in the charts. Take ES for example. Say 1200 is a big support level. And ES opens at 1207. Some really really bad news comes out and ES takes out the support at 1200 and trades down to 1195, most chart guys get bearish because we broke a "key" support level. However, based on the news, you might have thought ES would be selling off much more but it's not. In fact, some sectors of the market are not even down and before you know it, some key stocks are now in the green. The chart guy is so focused on that key 1200 level that he is not watching everything around him. The adept price action trader is actually buying ES below that key break because he knows the market is going much higher. That is how you read price action.
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Thanks for the detailed explanation, makes it much clearer now!
 
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