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The ACD Method
- Thread starter sbrowne126
- Start date
Can't remember the last time I saw TLT down 3 pts.
I've been lurking and haven't even gotten halfway thru this thread yet. I am studying MF's book again and trying to figure some things out. I suspect you've already covered this or maybe it's just a stupid question. Point me toward the answer and I'll try to learn it, thanks.
I'm looking at a 5-min chart and the market makes an A down, but a very short one and reverses strongly. It's not a rubber band trade I don't think because it spent 2 candles in the A down, at least 3x as long as it needed to confirm the A down. The stop is at the top of the range and it's a big range. It strikes me that it's a real loser to hold this position until I'm stopped out @ B. I've been calling these BOR BO, bottom open range breakouts, and I can't figure out how to deal with them. They occur with pretty regular frequency. Any advice?
I'm looking at a 5-min chart and the market makes an A down, but a very short one and reverses strongly. It's not a rubber band trade I don't think because it spent 2 candles in the A down, at least 3x as long as it needed to confirm the A down. The stop is at the top of the range and it's a big range. It strikes me that it's a real loser to hold this position until I'm stopped out @ B. I've been calling these BOR BO, bottom open range breakouts, and I can't figure out how to deal with them. They occur with pretty regular frequency. Any advice?
Quote from _PD_:
I've been lurking and haven't even gotten halfway thru this thread yet. I am studying MF's book again and trying to figure some things out. I suspect you've already covered this or maybe it's just a stupid question. Point me toward the answer and I'll try to learn it, thanks.
I'm looking at a 5-min chart and the market makes an A down, but a very short one and reverses strongly. It's not a rubber band trade I don't think because it spent 2 candles in the A down, at least 3x as long as it needed to confirm the A down. The stop is at the top of the range and it's a big range. It strikes me that it's a real loser to hold this position until I'm stopped out @ B. I've been calling these BOR BO, bottom open range breakouts, and I can't figure out how to deal with them. They occur with pretty regular frequency. Any advice?
I day trade only Crude Oil, so can not help with Index futures.
But to day trade index futures - where as they rotate 80% of the trading days- with ACD is a tough one for me.
In my experience index futures like ES , TF etc are not ideal for day trading using ACD method. These markets , in my experience tend to rotate all the time and method like Volume/Market profile are more helpful to day trade them.
Mark fisher himself said in his NYMEX webinar, that index futures are hardest to trade. I am assuming , he meant with ACD method.
I tell my friends who trade ES, TF etc.. using other method, just do not fade the market when one has strong A up or a down. At minimum ACD help traders to stay on the right side of the trend.
Quote from _PD_:
I've been lurking and haven't even gotten halfway thru this thread yet. I am studying MF's book again and trying to figure some things out. I suspect you've already covered this or maybe it's just a stupid question. Point me toward the answer and I'll try to learn it, thanks.
I'm looking at a 5-min chart and the market makes an A down, but a very short one and reverses strongly. It's not a rubber band trade I don't think because it spent 2 candles in the A down, at least 3x as long as it needed to confirm the A down. The stop is at the top of the range and it's a big range. It strikes me that it's a real loser to hold this position until I'm stopped out @ B. I've been calling these BOR BO, bottom open range breakouts, and I can't figure out how to deal with them. They occur with pretty regular frequency. Any advice?
Yeah, that's not an A down. An A down should not come back above the A level and the market price action should be "confirming" the weakness. In other words, what are bonds doing, oil, AAPL, XLF, VIX, etc. You can just get short because we had two or 3 candles below an A level.
I've tried to explain this concept for months on this board and I get a lot of flack for it. Let me try to explain it this way. You and I are have different A levels let's say. So on your chart, we spent 3 candles below the A down and on mine we have not even broken yet. So who is right? Neither of us. The answer is not your A level or mine, but rather price action. You and I should both be in agreement that the market is acting weak. That is what is going to generate the short trade. This is how all of us on this thread can have 15 different A levels yet all take the same trade because all of us can agree that the market is acting weak. I hope that explains it better.
Quote from _PD_:
I've been lurking and haven't even gotten halfway thru this thread yet. I am studying MF's book again and trying to figure some things out. I suspect you've already covered this or maybe it's just a stupid question. Point me toward the answer and I'll try to learn it, thanks.
I'm looking at a 5-min chart and the market makes an A down, but a very short one and reverses strongly. It's not a rubber band trade I don't think because it spent 2 candles in the A down, at least 3x as long as it needed to confirm the A down. The stop is at the top of the range and it's a big range. It strikes me that it's a real loser to hold this position until I'm stopped out @ B. I've been calling these BOR BO, bottom open range breakouts, and I can't figure out how to deal with them. They occur with pretty regular frequency. Any advice?
Something else that might help is that you want to remember that an A is a bias, not an entry. B would be where your bias becomes neutral, not necessarily an exit. Fish says this in the book, but personally I do feel as though he muddies the waters a bit in some of his examples.
Bias is key though, an A is a bias.
Hi Maverick74,
"I've tried to explain this concept for months on this board and I get a lot of flack for it. "
Must be before i came on board (lol). All BAD Seeds seems to have disappeared since i came on.
"I've tried to explain this concept for months on this board and I get a lot of flack for it. "
Must be before i came on board (lol). All BAD Seeds seems to have disappeared since i came on.
Quote from mfbreakout:
Hi Maverick74,
"I've tried to explain this concept for months on this board and I get a lot of flack for it. "
Must be before i came on board (lol). All BAD Seeds seems to have disappeared since i came on.
Well, it wasn't personal attacks or anything just a lot of people asking what's the point to this methodology if it's so subjective. I think a lot of people were under the impression this was a red light/green light trading system.