The ACD Method
- Thread starter sbrowne126
- Start date
Due to Globex nature of trading, the way i trade, all gaps are important for me as gaps signify some kind of change.
One can take out ATR and run the analysis ( if one does not want to include globex gaps) and results should be same.
When comparing futures vs each other, it makes sense to me to incorporate leverage.
All it shows whether one should be day trading CL vs SI etc...
I am not sure what pure intraday trading is. To me day trading is going home flat every day and using regular session and globex session levels to trade.
40 to 50 ticks moves may be noise for lot of traders but this is what I want everyday - with more volume and lesser holding time.
Prices moving up and down 60 ticks in a minute- i find difficult to trade. I call this trading Price Action.
Sorry for Jim Cramer- the CLOWN picture. I love watching him sweat at John Stewart show from couple of years ago though.
Prices moving up and down 60 ticks in a minute- i find difficult to trade. I call this trading Price Action.
Sorry for Jim Cramer- the CLOWN picture. I love watching him sweat at John Stewart show from couple of years ago though.
Mfb, price action is not defined as daytrading, it's usually defined as measuring how price is acting relative to something else. A price action trader is trading a relationship. For example, say AAPL gets downgraded by Goldman today due to poor ipad sales. I would expect the stock to be down huge pre-market. It ends up only trading off 3 pts, then by the open it's only down a pt, then 30 minutes in, it's positive. This is a stock I want to try to buy. I'm buying because of how price is "acting" relative to the negative news that came out. Simply trading AAPL because it has huge swings up and down is not price action.
Not trying to berate you, just want to give others on this thread an idea of what price action is and it does get mentioned a lot on ET and probably very few people really know what it means.
Agreed but that's just one part of it. What you are referring to is BAD news- Good price action and vice versa.
There been book written about Price Action and i hope you are not implying BAD news - Good price action is all there is.
If you are, then we agree to disagree.
Here is an example of Price Action from the trenches. I am not looking at chart patterns, candles shapes, Moving averages etc..
The reason I call this PRICE ACTION based trading because till the trading starts and players get in the field, I have no clue/bias etc.. as to what would happen at 99, 99.42, 99.87 etc.. All I have are my reference points and in a vacuum ( meaning without the participation of other players) they do not mean anything. I have 100.12 as resistance, that does not mean i wait all day to short there. When price gets to 100.12, i may or may not short or may actually add to long position etc..
Long of 99.34 @ 11.45 am out 99.22 @12.17 pm. Only reason, i went long was due to the fact that we had an A up per my OR and price pulled back to OR high. Low volume , high volume, holidays, CL gives opportunities to have 100 or more ticks every day- Some days are easier to trade Vs other days.
Waiting to see what happens @99.90 to 100.20 area. If breaks on some Volume, hopefully will get pull backs to 99.40 area to get long.
I have started sounding like Oil salesman (lol).
I can see what you are saying...you are looking at price relative to reference points to establish trades.
Mav is just taking a step further out with product selection, spreads, longer holds etc. , he is still looking at price relative to something else...he can just be alot more flexible with his trading.
You keep on plugging away MFB, I enjoy watching your intra day approach! Seems like you have put many hours and work into it
Hell maybe you'll be trading spreads and the whole universe of products in a year or two...i'll be sitting back and watching your mastery of CL!